The dollar erased losses against the euro, trimming a weekly decline, as a higher-than-forecast increase in orders for U.S. durable goods added to speculation the Federal Reserve may slow monetary stimulus this year.
The yen fell against most major currencies, sliding from near an eight-month high versus the dollar, amid speculation the Federal Reserve may consider more stimulus for the U.S. economy at its meeting tomorrow.
The yen for a second day reached the weakest level in four years, when it last traded at 100 per dollar, as traders speculated Bank of Japan stimulus measures will keep driving investors into higher-yielding currencies.
The yen strengthened against the dollar for a second day after its 5.5 percent drop over the past month prompted criticism from leaders around the world that recent exchange-rate moves have been excessive.
The Dollar Index rose for a second day, erasing an earlier loss as optimism faded that China’s vow to add more flexibility in the yuan’s fixed exchange rate would strengthen the world’s economic recovery.