The euro appreciated 3.2% this year, in a basket of 10 developed-market currencies tracked by Bloomberg Correlation- Weighted Indexes. The yen slumped 10.7%, the biggest drop, and the dollar rose 4.9%, the largest advance.
The dollar pared today’s decline after Williams said in Stockholm that the Fed may start reducing its bond-purchasing program by the “summer” and potentially end quantitative easing by year end.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against currencies of six U.S. trading partners, was 0.2% lower at 83.234, after depreciating as much as 0.5% before his comments.
The Turkish lira was the biggest loser among 31 currencies against the greenback on concern days of protest against Prime Minister Recep Tayyip Erdogan will undermine his efforts to overhaul the political system.
The lira depreciated 1.1% to 1.8958 per dollar.
South Africa’s rand appreciated at least 0.2% against all 16 of its major peers after a report showed manufacturing unexpectedly expanded in May. The gauge fell to 50.4 in May, from 50.5 in April. The median estimate of economists in Bloomberg survey was for a decline to 49.9.
The currency of Africa’s biggest economy added 1.1% to 9.9833 per dollar from May 31, when it touched 10.2847, the weakest level since March 2009.
The Swiss franc weakened against its 16 major counterparts. Swiss National Bank President Thomas Jordan said the franc remained strong even after recent declines, according to an interview with the Schweiz am Sonntag published yesterday.