The yen fell for a fourth day against the dollar after the Group of 20 gave Japan leeway to reflate its economy by indicating the nation’s monetary stimulus plan doesn’t contravene a pact to avoid currency devaluations.
The New Zealand dollar may gain against its Australian counterpart on speculation Reserve Bank of New Zealand Governor Graeme Wheeler may signal a bias toward higher interest rates in a statement tomorrow, according to Citigroup Inc. and UBS AG.
Investors should buy the New Zealand dollar after foreign-exchange markets misinterpreted a speech by central-bank Governor Graeme Wheeler as signaling intervention to weaken the currency, according to Citigroup Inc. and Nomura Holdings Inc.
The Australian dollar traded 0.4 percent from a 2 1/2-year low versus its New Zealand peer before minutes of the Reserve Bank of Australia’s meeting this month are released tomorrow amid prospects of lower borrowing costs.
Bank of Japan Governor Masaaki Shirakawa, who set the nation’s first inflation goal six months ago to halt a decade-long struggle with deflation, has failed to produce the weaker currency craved by exporters.