Australia’s dollar rose, paring its biggest annual slide since 2008, as investors eased bets on further declines in the currency, which has trailed only the yen as the worst performer among major peers this year.
Australia’s dollar fell, paring its first five-day gain in three weeks, while the New Zealand kiwi slid after the central bank governor said the currency’s level is a headwind for growth and unsustainable in the long run.
The Australian dollar fell for a fourth straight week versus its U.S. counterpart as European leaders’ struggle to agree on measures to resolve the region’s debt crisis curbed demand for higher-yielding assets.
The yen is set to snap this month’s advance against its Group of 10 peers, trading patterns suggest, amid speculation the Bank of Japan will have to expand monetary easing to ensure it meets an inflation target.
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.
The dollar rose against most major peers as Federal Reserve officials said they might reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves, minutes of their last meeting show.