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.
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.
Individual investors are buying record amounts of notes betting that Brazil’s real will continue its world-beating advance amid speculation the Federal Reserve will keep pumping money into the global economy into 2014.
The dollar fell in the longest stretch since June as traders weighed whether the economy is strong enough to warrant a reduction in monetary stimulus and as political budget wrangling threatened a government shutdown.
South Korea’s won is poised to rebound from its lowest level in two months versus the dollar as Japan’s reluctance to expand stimulus measures reduces the threat of more interest-rate cuts, trading patterns show.
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.