The dollar climbed to the highest in almost a month against the yen as signs of improvement in the U.S. economy buoyed speculation the Federal Reserve will start scaling back asset purchases this year.
The yen fell against all of its 16 major peers as a report showed Japanese investors sent funds into foreign bonds for a fourth week and as Asian shares climbed on better-than-forecast Chinese manufacturing data.
The Australian and New Zealand dollars fell for a third day before the Federal Reserve publishes minutes of its last meeting, which may provide clues on when U.S. policy makers plan to slow stimulus that has inflated asset prices around the world.
The franc capped weekly gains against the euro and dollar after a report showed the U.S. lost more jobs than forecast last month, adding to concern the recovery is slowing and stoking demand for the Swiss currency as a haven.
The Swiss franc’s best start to a year against the euro since the common currency’s debut is regaining momentum as the nation’s economy strengthens, just as budget cuts begin to throttle growth in the 16-nation region.
Australia’s dollar fell to the lowest in almost three years versus the greenback after home- loan approvals grew at the slowest pace in three months, boosting the case for further cuts to borrowing costs.