Australia’s dollar dropped, poised to match its longest run of weekly declines in seven years, amid speculation the nation’s central bank will take steps to curb currency strength.
The currency market is experiencing a bout of deja vu, with the yen’s tumble to a 4 1/2-year low and the dollar’s rebound drawing resemblances to 1995.
The dollar may fall to a six-week low against the yen as the pair remains in a “triangular consolidation” formation, Gaitame.com Research Institute Ltd. said, citing trading patterns.
The yen traded near its lowest level in four months amid speculation that the Bank of Japan will expand monetary stimulus to rein in the currency’s strength.
The dollar held a two-week gain versus the yen before Federal Reserve officials speak amid signs the U.S. economy may be strong enough for the central bank to taper monetary stimulus.
"The dollar continues to be supported by the drop in oil prices."
- Daisaku Ueno on Nov 30, 2014