Yen depreciates to six-month low on Iran accord

‘Positive Impact’

“The Iran deal is a huge boost as our oil costs will come down,” said Vikas Babu, a trader at Andhra Bank in Mumbai. “The swap-window extension will have a limited, but positive impact on the exchange rate.”

The rupee gained for a second day, adding 0.6% to 62.4950 per dollar.

Japan’s statistics bureau will say on Nov. 29 the nation’s consumer prices excluding fresh food rose 0.9% last month from a year earlier, according to the median estimate of economists surveyed by Bloomberg News. Deflation is coming to an end and the nation’s economy is recovering as expected, Mitsuhiro Furusawa, vice minister of finance for international affairs said today.

The Bank of Japan said in April it wanted to achieve 2% inflation in about two years. Governor Haruhiko Kuroda said today the bank’s target could be hit sometime late in the fiscal year through 2014 or early in the 2015 period.

Inflation Target

“This week, we will probably see another tick up in the CPI data out of Japan,” Steven Saywell, global head of foreign- exchange strategy at BNP Paribas SA in London, said in an interview on Bloomberg Television’s “On the Move” with Manus Cranny. “The BOJ is very much focused on reaching the inflation target and what that means is that the yen continues to weaken.”

The yen lost 13% this year, the biggest decline among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar rose 4% and the euro advanced 6.9%.

The euro declined after the ECB’s Ardo Hansson said in an interview in Tallinn on Nov. 22 that the Frankfurt-based central bank’s “options on rate cuts are still not fully exhausted and there are all kinds of other measures that are still on the table,” Hansson heads Estonia’s central bank.

www.bloomberg.com

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