The yen fell past 102 per dollar, declining for a fourth day, after Group of Seven finance chiefs indicated they will tolerate a slide in the currency for now as they intensified their focus on Japan’s recovery strategy.
The greenback strengthened versus its 16 major peers after Treasury benchmark 10-year yields rose to the highest in seven weeks and before Federal Reserve Bank of Philadelphia President Charles Plosser speaks tomorrow. The Australian dollar extended a slump from last week, the worst five-day decline since November 2011, as Treasurer Wayne Swan is forecast to project a fifth and sixth year of budget deficits tomorrow.
“The trend for a weaker yen has been reactivated, and with the G-7’s tacit approval, I think the trend for weaker yen will gather pace this week,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “The market’s in the mood to try and take the dollar higher.”
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