The forint dropped the most in a month as central bank President Gyorgy Matolcsy signaled further measures to loosen policy and Goldman Sachs Group Inc. recommended selling the currency. Yields plunged at a bond sale.
The yen slid to the weakest since June 2010 versus the dollar after Japanese Prime Minister Shinzo Abe’s government said it will spend 10.3 trillion yen ($116 billion) in new stimulus efforts that may weaken the currency.
Goldman Sachs Group Inc. recommended investors end a money-losing bet that the euro will gain against the dollar as new governments in Italy and Greece failed to calm investor concern that the region’s debt crisis will spread.
For Raimund Muecke, the euro’s 17 percent surge against the dollar over the past five months signals a return to the days when a thriving Germany and an appreciating deutsche mark meant a robust Europe.
Slowing U.S. growth and the widening interest-rate gap between America and the rest of the world may mean no rebound this year for the dollar, the world’s worst- performing major currency in the past three months.
The yen slid to the weakest level since June 2010 versus the dollar, extending its longest streak of weekly losses since 1989, as Japan planned new monetary stimulus. Shares of U.S. banks retreated as Wells Fargo & Co.’s lending margin shrank. The euro and Italian bonds rose.
Goldman Sachs Group Inc., the U.S. bank that lost money from trading on only one day in the first quarter, cut its dollar forecasts saying growth in the world’s largest economy is lagging behind other nations.