The record drop in U.S. government securities held in custody at the Federal Reserve is fueling speculation that Russia may have shifted its holdings out of the U.S. as Western nations threaten sanctions.
The yuan is poised to weaken against the dollar in 2014 for the first time in five years after China’s central bank doubled the currency’s trading range, according to Bank of America Corp. and Barclays Plc.
The euro fell versus the dollar as the European Central Bank signaled it’s monitoring gains in the currency for deflation risks. The yen rose on demand for a haven amid turmoil in Ukraine and pessimism about China’s economy.
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.