The yen climbed to the strongest level in almost four weeks against the dollar after a gauge of U.S. manufacturing expanded less than forecast, adding to haven demand and damping bets the Federal Reserve might slow its bond- buying under quantitative easing.
The Canadian dollar rose for a fifth day against its U.S. counterpart as oil, the country’s largest export, touched its highest point in a month, prompting investors to reverse near-record bets the currency will fall.
The dollar halted a five-week rally against the euro that was backed by signals of a strengthening economy, as bullish momentum waned and a report yesterday showed March consumer sentiment trailed forecasts.
Hedge funds are amassing record bets against the Canadian dollar on speculation the Bank of Canada will drop its bias toward raising interest rates, putting it in unison with the rest of the Group of Seven nations.
The yen probably won’t gain more than another percentage point or two versus the dollar before reversing course as the Bank of Japan moves closer to open-ended asset purchases, according to Citigroup Inc.’s Greg Anderson.
The perjury trial of Barry Bonds may hinge on whether jurors believe the baseball home run king, who claims he didn’t know his trainer was giving him steroids, or Jason Giambi , the former New York Yankee expected to testify he was given the muscle-building drugs by the same trainer.
The euro touched the lowest level against the dollar in six weeks after the European Central Bank said institutions will repay less of Long-Term Refinancing Operation borrowing next week than economists forecast.