The yen declined after the Ministry of Finance said Japanese investors bought 233.2 billion yen more overseas bonds and notes than they sold last week.
Bank of Japan Governor Haruhiko Kuroda in April unveiled a plan to buy more than 7 trillion yen of Japanese debt a month to spur the economy and end deflation. He has said the policy would prompt domestic investors to rebalance their portfolios by purchasing foreign bonds and other assets.
The pound rose from the weakest since March the euro as the Bank of England’s nine-member Monetary Policy Committee held its bond-purchase target at 375 billion pounds. It also kept the benchmark interest rate at 0.5%.
An index of U.K. manufacturing climbed to 54.6 this month from a revised 52.9 in June, London-based Markit Economics and the Chartered Institute of Purchasing and Supply said.
Bank of England Governor Mark Carney will present the MPC’s review of steering policy expectations next week after saying in July that bets on future interest rates were “not warranted.”
“We expect pound downside pressure to continue to build,” Morgan Stanley strategists including Hans Redeker in London wrote today in a note to clients. “The move towards a more transparent BOE is expected to continue.”
The pound appreciated 0.4% to 87.14 pence per euro after earlier sliding to 87.70, the weakest level since March 12. The U.K. currency was little changed at $1.5185.
Sweden’s krona weakened against all except two of its 16 major peers as Swedbank AB said a manufacturing index based on responses from purchasing managers fell to a seasonally adjusted 51.3 in July from 53.5 the previous month. Economists surveyed by Bloomberg predicted a reading of 53.
The krona slumped 0.9% to 6.575 per dollar and weakened 0.4% to 8.7008 per euro.