The Bank of Japan’s failure to achieve its inflation target will see the yen rebound to the highest since 2012, reversing the results of its unprecedented stimulus, according to Tokai Tokyo Securities Co.
The New Zealand dollar slid against all its major counterparts amid speculation the Reserve Bank will make comments aimed at curbing the currency’s strength as officials set monetary policy at a meeting tomorrow.
Treasury 10-year notes fell for the first time in three days as investors weighed whether Federal Reserve Chairman Janet Yellen will signal the U.S. economy is strong enough to withstand cuts in stimulus in testimony today.
The yen rose against most of its 16 major counterparts before a German report forecast to show a gauge of business confidence dropped for a fifth month, increasing the allure of the Japanese currency as a haven.
The yen held gains from yesterday versus most of its major counterparts as declines in Asian stocks and concern about Greece’s ability to complete a debt swap supported demand for the currency as a refuge.