“The yen depreciated to its weakest in 2 1/2 years against the dollar and euro amid speculation Prime Minister Shinzo Abe will select a new Bank of Japan (8301) governor who will boost monetary stimulus.
Japan’s currency extended its 12th weekly drop against the dollar as a report showed the jobless rate rose and household spending fell. The euro climbed against the greenback as a report showed manufacturing in the 17-nation region contracted less than estimated in January. The krona reached its strongest level in five months as Sweden’s manufacturing improved in December. The Dollar Index fell as stocks advanced before a report economists said will show U.S. employers added more workers.
Speculation about a new Bank of Japan governor “is the number-one source of the move we have seen in the yen,” said Peter Frank, global head of foreign-exchange strategy inLondon at Banco Bilbao Vizcaya Argentaria SA. (BBVA)“Because you are having that at the same time as strong equities, strong risk-on news flow generally, the yen is doubly weak.”
The yen sank 0.5 percent to 92.13 per dollar at 10:42 a.m. London time, after earlier touching 92.30, the weakest since June 2010. It slid 1.1 percent to 125.94 per euro, after being as low as 126.16, the least since April 2010.
The euro gained 0.7 percent to $1.3668, after being as strong as $1.3675, the most since Nov. 14, 2011. Yesterday it completed the longest stretch of monthly advances against the dollar since May 2003.
