Yen gains most in eight months on weakness warning

Inflation Target

“Classical indicators suggest it is oversold,” O’Neill said in an interview on “Bloomberg Surveillance” from London. The Bank of Japan “has got to show its going to take this 2% inflation target seriously. Rather than just a goal, it has to be a target,” he said.

The yen has slumped 16% in the past six months, the biggest decline among the 10 developed-market currencies tracked by Bloomberg Correlation Weighted Indexes, as Abe was swept to power with a pledge to weaken the currency. The dollar dropped 4.6% and the euro gained 4.8%.

The greenback rose versus most major peers. Retail sales in the U.S. increased more than projected in December, gaining 0.5% after a revised 0.4% increase in November, Commerce Department figures showed today. The median forecast in a Bloomberg News survey was for a 0.2% rise. A report by the Federal Reserve Bank of New York showed manufacturing in the New York region shrank in January for a sixth straight month.

Bloomberg News

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