The Canadian dollar touched its highest point in four weeks against its U.S. peer as signs of growth in the North American economy boosted bets the Bank of Canada will raise interest rates earlier than expected.
The euro dropped from the highest level in three weeks versus the dollar as demand for the currency bloc’s assets faded after data showed German retail sales fell and the region’s unemployment rose to a record.
The dollar gained versus all of its 16 most-traded peers for the first month since 2011 as speculation grew that stronger U.S. economic data will spur the Federal Reserve to reduce its unprecedented monetary stimulus.
The yen gained the most in three weeks against the dollar as Japanese Economy Minister Akira Amari said further losses in the currency would have negative effects after it fell to the lowest since 2008 last week.
The yen slid to 100 per dollar for the first time in four years, extending losses triggered by the Bank of Japan’s deflation-fighting efforts. U.S. 30-year bonds erased gains while U.S. benchmark stock indexes fell from records.
The yen weakened beyond 100 per dollar for the first time in four years as the Bank of Japan’s deflation-fighting measures have the currency headed for its longest streak of monthly losses in almost two decades.
The euro fell for the first time in five days against the dollar after European Central Bank President Mario Draghi said policy makers may take the unprecedented step of charging banks to hold excess reserves.