The yen fell to the lowest level in almost three weeks against the dollar on speculation Bank of Japan Governor Haruhiko Kuroda will reiterate the case for monetary easing at an annual Federal Reserve’s conference.
The euro headed for a second weekly gain versus the yen as European Central Bank Governing Council member Ewald Nowotny said good economic news removed the need for further interest- rate cuts. The dollar was poised for a weekly advance against most major peers as data backed the case for the Fed to reduce stimulus. Emerging-market nations boosted efforts to halt currency losses, with Brazil announcing an intervention program and Indonesia planning to reduce its current-account deficit.
Kuroda is “going to continue that language just to make sure that markets are well aware that the Bank of Japan still has ammunition left,” Brian Daingerfield, a Stamford, Connecticut-based currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit, said in a telephone interview. “That’s something that could certainly be contributing to the weakness in the yen that we’ve seen recently.”
The yen declined 0.3% to 99.03 per dollar at 9:56 a.m. in New York and touched the weakest level since Aug. 5. Japan’s currency dropped 0.2% to 132.16 per euro, having fallen 1.7% this week. The euro was little changed at $1.3349.
Brazil’s currency gained after the central bank stepped up efforts to arrest the world’s second-worst currency decline, announcing a $60 billion intervention program involving currency swaps and loans. The real rose 1.4% to 2.4018 per U.S. dollar.
Indonesia’s rupiah rebounded from a four-year low after the central bank announced measures to boost foreign-currency supply. The rupiah gained 0.4% to 10,780 per dollar.
India’s rupee jumped 2% to 63.3300 per dollar to pare a weekly drop to 2.7% as Asia’s No. 3 economy faces risks from a current-account deficit that’s not sustainable, slowing growth, a budget gap and rising bad loans at banks, the Reserve Bank of India said.
South Africa’s currency gained, paring a second straight weekly drop on signals from emerging-market nations that they may support markets. The rand advanced 0.4% to 10.2426 per dollar.