The Canadian dollar gained from a one-year low against its U.S. counterpart amid speculation the Federal Reserve may not taper its monetary stimulus, known as quantitative easing, as soon as some investors anticipated.
The Dollar Index climbed to the highest level in almost three years amid speculation the Federal Reserve is moving closer to ending its program of asset purchases on signs U.S. economic growth is improving.
The U.S. economy will continue to recover until at least 2015 without tumbling into a recession, achieving the sustained growth that has eluded it since the last slump ended four years ago, according to a Bloomberg poll.
Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.
Philippine bonds due 2037 fell for the first time a week as signs the U.S. economy is strengthening fueled bets the Federal Reserve will scale back stimulus that has spurred inflows into emerging markets. The peso gained.
The dollar had its biggest rally since February as signs of labor market strength suggested the Federal Reserve may reduce stimulus sooner than its peers, driving the yen lower than 100 for the first time since 2009.