The euro rallied for a fifth week as European Central Bank President Maro Draghi said he expects inflation in the currency bloc to gradually rise, damping bets that policy makers would reduce the benchmark interest rate.
The dollar rose to a six-week high against the yen as U.S. employment gains exceeded forecasts, boosting speculation that the Federal Reserve will continue to pare monetary stimulus that’s seen as debasing the currency.
The yen had the biggest monthly loss since January versus the dollar on speculation that the fastest Japanese inflation in 15 years will lead Prime Minister Shinzo Abe to press on with unprecedented stimulus measures.
The euro gained for a third straight month versus the yen after the currency region’s consumer-price index rose more this month than forecast, fueling bets the European Central Bank will refrain from further stimulus.
Canada’s dollar declined after the Bank of Canada left its benchmark overnight rate unchanged at 1 percent after three previous increases amid slowing economic growth and as other central banks, including the U.S. Federal Reserve, consider further action to stimulate their economies.
The Treasury Department’s $30 billion sale of three-year notes may draw a yield of 0.638 percent, according to the average forecast in a Bloomberg News survey of five of the Federal Reserve’s 21 primary dealers.
Canada’s dollar touched the weakest level in more than two years against its U.S. peer as the central bank prepared to meet Dec. 4 amid bets it will be slower to reduce monetary stimulus than the Federal Reserve.