08-15-2014, 01:11 AM
| | Yen Weakens Versus Major Peers on Reduced Haven Demand
The yen weakened versus most of its 31 major peers amid speculation the crises in Ukraine and the Middle East have waned, diminishing demand for haven assets.
A gauge of the dollar remained lower after applications for unemployment benefits in the U.S. rose more than forecast last week. The euro traded at almost this year’s low versus the dollar after Germany’s economy contracted last quarter and France’s stagnated, boosting speculation the European Central Bank will add stimulus. The pound fell to a four-month low, while the Ukrainian hryvnia rose as a convoy Russia says is carrying aid resumed its course toward Ukraine.
“For any geopolitical situation, when it first emerges it has a big market impact, and even if the situation doesn’t improve, we go along through time and the market becomes comfortable with it,” Greg Anderson, head of global foreign-exchange strategy at Bank of Montreal, said in a phone interview. “We’re starting to get the building-in, in early stages, positioning for a new round of quantitative-easing by the Bank of Japan.”
The yen dropped 0.1 percent to 136.97 per euro at 4:10 p.m. in New York. Japan’s currency fell less than 0.1 percent to 102.46 per dollar after earlier touching 102.66, the weakest level since Aug. 5. The euro was little changed at $1.336 after falling to $1.3333 on Aug. 6, the least since Nov. 8.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 developed-market peers, fell 0.1 percent to 1,020.94. The gauge touched 1,024.67 on Aug. 6, matching the highest since Feb. 11.