Volatility among major currencies fell to the lowest since 2007 as global central-bank balance sheets continue growing, driving more liquidity into financial markets, even as the economy worldwide recovers.
The dollar strengthened for a fifth day against a basket of major peers as an agreement to start de- escalating the conflict in Ukraine sent stocks higher and pushed Treasuries down the most in a month.
The dollar rose the most in two weeks against the yen as risk appetite swelled amid a higher- than-forecast gain in U.S. industrial production and as companies’ earnings topped estimates, damping demand for safety.
The dollar rose for a third day as tension in Ukraine prompted traders to seek refuge in the world’s reserve currency and on speculation Japan may be moving closer to starting another round of economic stimulus.
The dollar fell to the weakest level in more than five months versus a basket of peers after several Federal Reserve policy makers said projections for an interest- rate rise were overstated in minutes from its last meeting.