The Standard & Poor’s 500 Index returned to a record as a Federal Reserve official said bond purchases should continue and Goldman Sachs Group Inc. forecast the stock rally will last at least through 2015. Treasuries rose and the yen pared earlier losses while grains and gold fell.
The Federal Reserve will refrain from tapering its $85 billion in monthly bond purchases before the end of Chairman Ben S. Bernanke’s term in early 2014, according to Brown Brothers Harriman & Co.’s Marc Chandler.
The euro fell against the dollar for the first time in five days and the region’s bonds rallied as European Central Bank President Mario Draghi said policy makers have an open mind about a negative deposit rate. U.S. stocks rose as American jobless claims decreased to a five-year low.
The dollar declined to the lowest level in more than a week against the euro after U.S. employers added fewer jobs in March than forecast, fueling speculation growth in the world’s biggest economy is slowing.
The yen slid toward the 100 per dollar level not seen for four years, extending its longest streak of monthly losses in more than a decade, as the Bank of Japan’s stimulus policies weren’t opposed by the Group of 20.
The euro may fall below $1.20 for the first time in almost two years as concern that Spain is struggling with its finances adds to bets Europe’s debt crisis will worsen, Brown Brothers Harriman & Co.’s Marc Chandler said.
The International Monetary Fund said it isn’t discussing a rescue package with Italy and Japan said no such talks have occurred within the Group of Seven, amid concern that Italy will struggle to bring down borrowing costs.