Canada’s dollar fell for a third week as central-bank Governor Stephen Poloz’s signal that interest rates may stay lower longer contrasted with a Federal Reserve that may let borrowing costs rise by trimming its bond-buying.
The yen fell against all of its 16 major peers as investors sought riskier assets and concern mounted that inflation will fall short of the Bank of Japan’s 2 percent goal, spurring more monetary easing.
Canada’s dollar fell to the lowest in three years as central-bank Governor Stephen Poloz warned of low inflation, spurring bets the Bank of Canada will keep interest rates on hold as the Federal Reserve trims bond-buying.
The yen had the biggest monthly loss since January versus the dollar on speculation that the fastest Japanese inflation in 15 years will lead Prime Minister Shinzo Abe to press on with unprecedented stimulus measures.
The euro gained for a third straight month versus the yen after the currency region’s consumer-price index rose more this month than forecast, fueling bets the European Central Bank will refrain from further stimulus.
The dollar rose to a six-month high against the yen as an unexpected drop in U.S. jobless claims and a rise in leading economic indicators added to speculation the Federal Reserve may start reducing stimulus next month.