The Australian dollar’s implied volatility may rise along with that for the euro and New Zealand’s kiwi because the Federal Reserve’s interest-rate guidance lacked clarity, Commonwealth Bank of Australia said.
The yen is set to snap this month’s advance against its Group of 10 peers, trading patterns suggest, amid speculation the Bank of Japan will have to expand monetary easing to ensure it meets an inflation target.
The Australian dollar headed for a weekly drop versus currencies of the U.S. and Japan on concern China’s economy is slowing and before Crimea votes this weekend on whether to leave Ukraine to join Russia.
The yen slid versus all its major counterparts as Asian stocks rose and the extra yield investors receive from U.S. securities climbed to the most in four months, damping the allure of Japan’s currency.
The dollar fell versus its major peers for the first time in four days, paring a weekly gain, as investors weighed prospects for U.S. economic growth against signals the Federal Reserve will raise interest rates next year.