Polish shares fell the most in June as leaked recordings of a conversation between the central bank chief and a minister sparked a political crisis. The zloty pared losses as Prime Minister Donald Tusk defended the policy maker.
The yen rose the most in almost a month versus the euro on speculation Bank of Japan stimulus is boosting the economy while the European Central Bank will expand currency-debasing measures to revive growth.
Turkish central bank Governor Erdem Basci indicated to analysts in London on April 3 that he planned to keep monetary policy tight to control inflation. Less than a week later, after the country’s premier weighed in on the matter, he was sending out different signals.
The hryvnia rallied after Ukraine’s central bank raised interest rates by the most since 1998 to stem the world’s worst selloff this year. Government bonds dropped amid a military confrontation in the country’s east.
The European Central Bank is unlikely to accept any default-rated Greek bonds as collateral, and thus the French proposal to roll over Greek securities announced last week will probably be withdrawn, according to Commerzbank AG.
The dollar rose for a third day as tension in Ukraine prompted traders to seek refuge in the world’s reserve currency and on speculation Japan may be moving closer to starting another round of economic stimulus.