The pound advanced versus the dollar after the future Bank of England Governor Mark Carney said the U.K.’s monetary policy may be enough to help the economy, damping speculation that he would expand stimulus.
The yen fell to the weakest level in almost nine months versus the dollar amid speculation the party of Japanese opposition leader Shinzo Abe, an advocate of unlimited monetary easing, will win weekend elections.
The yen slumped for a fifth week against the dollar, the longest streak since March, before Japanese opposition leader Shinzo Abe, an advocate of unlimited monetary stimulus, is projected to win weekend elections.
The pound dropped from a seven- month high against the dollar after the U.K. economy unexpectedly slipped back into recession, backing the case for the Bank of England to extend its asset-purchase program.
For all his success in driving the yen down by the most in 16 years, Bank of Japan Governor Masaaki Shirakawa is under pressure from local companies to weaken the currency even more, while traders anticipate a rebound.