Malaysian Prime Minister Najib Razak’s promise of measures to curb the budget gap and avert a credit-rating downgrade helped send three-year government bond yields to a four-month low. His resolve is about to be tested.
The dollar may extend this year’s 12 percent climb against the euro even after Europe crafted a $1 trillion plan to rescue Greece and other debt-laden governments, said Deutsche Bank AG, the world’s biggest currency trader.
Japan is likely to intervene in the foreign-exchange market if the yen strengthens to the 75 level against the dollar again after reaching a postwar high last week, Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG said in an interview. Investor trading will probably reflect nervousness and be driven by movements in U.S. stocks and comments by Japanese officials, he said.