The global currency wars are heating up again as central banks embark on a new round of easing to combat a slowdown in growth.
The pound weakened from near a two- year high versus the dollar after an industry report showed U.K. service growth slowed more in November than economists forecast.
The yen rose, snapping a two-day decline against the dollar and the euro, as concern over the pace of the U.S. recovery and the financial health of European banks boosted demand for Japan’s currency as a refuge.
The pound fell for a second day against the dollar, reaching the lowest level in six weeks, as investors judged the rally that helped push the U.K. currency to a 4 1/2-year high was overdone.
The dollar weakened from a one-month high against its major peers reached last week before a report forecast to show U.S. durable goods orders dropped in April.
Switzerland’s franc weakened against the euro and the pound, paring its advance one day after climbing to records as investors unwound positions in thin year- end trading.
"The U.K. is just coasting toward monetary tightening, things are going very well."
- Neil Mellor on Jul 18, 2014
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