Japan’s government must demonstrate a commitment to fiscal rehabilitation to boost the credibility of government bonds and prevent a spike in long-term yields as soaring stocks damp the allure of the nation’s sovereign debt, Economy Minister Akira Amari said.
The Dollar Index climbed to the highest level in almost three years amid speculation the Federal Reserve is moving closer to ending its program of asset purchases on signs U.S. economic growth is improving.
European Aeronautic, Defence & Space Co., Europe’s biggest aerospace and defense company, and Safran SA used currency hedges to lock in lower exchange rates for the next four years after the euro weakened, filings show.
Denmark is shelving indefinitely its euro adoption goal as Prime Minister Helle Thorning-Schmidt says an exchange rate peg without full European monetary membership is proving the best currency regime for the Nordic nation.
Indonesia’s bonds fell this week, pushing the 10-year yield up by the most since August, and the rupiah declined on speculation the nation’s lack of progress in cutting fuel subsidies will spur outflows.
Turkish bonds surged and the lira touched an 11-month low after a bigger-than-forecast cut to interest rates preceded a decision by Moody’s Investors Service to raise the nation’s credit rating to investment grade.
Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.