The dollar rose to its highest level since September as data from industrial production to housing starts helped offset unemployment figures a week ago, signaling the Federal Reserve may continue reducing stimulus.
Japan may sell some of its foreign holdings, including U.S. debt, to finance increased spending after the country’s strongest earthquake left millions without electricity or water, according to Brown Brothers Harriman & Co.
The yen fell against all of its 16 major peers as investors sought riskier assets and concern mounted that inflation will fall short of the Bank of Japan’s 2 percent goal, spurring more monetary easing.
The dollar rose against the yen for an eighth week, the longest streak since February, after Federal Reserve officials voted to reduce monetary stimulus amid signs that economic growth is gaining momentum.
Foreign central banks’ holdings of Treasuries held at the Federal Reserve breached $3 trillion for the first time as nations intervening in the currency markets plowed dollars back into U.S. government debt.
Brazil’s real rose, approaching its strongest level since August 2008, after foreign direct investment last month exceeded forecasts, signaling increasing demand for assets from Latin America’s biggest economy.