The yen stopped just short of 100 to the dollar, a level it hasn’t reached in four years, as it slid after the Bank of Japan announced unprecedented stimulus measures on April 4 to end 15 years of deflation.
The yen rallied against all of its 16 most-traded peers after it failed yesterday to weaken beyond 100 to the dollar, a level not seen in four years, and a technical indicator signaled it had fallen too much, too fast.
Investors who expect the global economy to keep slowing may profit by selling the Chilean peso and buying Brazil’s real, Mike Moran, a strategist at Standard Chartered Plc in New York, said yesterday in a phone interview.
Latin American currencies will probably stabilize after renewed optimism about the global economy fueled the biggest monthly rally since 2009, according to the top forecaster for the region in Bloomberg Rankings.
Peru’s sol had its biggest weekly rise since August as the Federal Reserve’s measures to boost the U.S. economy lifted commodity prices and fueled demand for higher-yielding, emerging-market currencies.
The yen slid to the weakest level since July 2010 against the dollar after a Nikkei report quoted Japanese Prime Minister Shinzo Abe as saying the central bank should include maximum employment among its goals.