The yen rose to a four-month high versus the euro on speculation the Bank of Japan will refrain from expanding stimulus at a meeting beginning tomorrow, diverging from the European Central Bank that added easing last week.
The dollar slumped to a 15-year low against the yen after a private report showed U.S. companies unexpectedly cut jobs last month, fueling speculation the Federal Reserve will buy U.S. assets to spur a slowing economy.
Traders are betting the Canadian dollar fell too far, too fast in its worst start to a year in more than four decades, as rising commodities prices and a forecast budget surplus damp speculation for interest-rate cuts.
The euro retreated from an eight- month high versus the dollar before the European Central Bank meets today for the first time since President Mario Draghi said he’s ready to inject cash into the banking system.
Canada’s dollar may gain to the strongest level versus its U.S. counterpart since 2007 amid expectations the Canadian central bank will raise interest rates before the Federal Reserve, according to Credit Suisse Group AG.