U.S. stocks erased gains as investors sold equities in the final 30 minutes of trading before changes to MSCI Inc. indexes, trimming an earlier rally after improved housing data. Treasuries advanced while Europe’s benchmark gauge fell for the first time in three days.
The yen fell to a four-year low against the euro and weakened past 101 per dollar as Japan’s central bank kept its pledge to expand the monetary base as part of the government’s strategy to end 15 years of deflation.
The yen fell against all of its 16 most-traded counterparts as risk appetite increased amid speculation that U.S. lawmakers will reach an agreement to avert a default, curbing demand for Japan’s currency as a refuge.
The pound rose to a two-week high against the dollar as data showed U.S. employers added fewer workers in August than analysts forecast, damping bets the Federal Reserve will pare currency-debasing stimulus measures.