The yen fell to a six-month low versus the dollar after reports showed manufacturing in China, Europe and the U.K. expanded last month, driving demand for risk and underscoring Japan’s currency’s role in the carry trade.
The Dollar Index may decline to its lowest level in more than 13 months after weaker-than-forecast payroll data pushed the gauge below a key support level, according to JPMorgan Chase & Co., citing technical indicators.
New Zealand’s dollar may fall to the weakest in almost six weeks versus the greenback after the currency failed to strengthen past this year’s high set in April, according to JPMorgan Chase & Co., citing technical indicators.
The dollar retreated from a three- week high versus the yen after encountering so-called technical resistance and as the short-term debt deal passed by U.S. Congress failed to end political uncertainty.
The yen weakened for the first time in five days against the dollar as speculation Japan’s government will cut corporate taxes spurred stock gains and damped demand for the relative safety of the currency.