The yen retreated from a seven-week high versus the dollar after Japan reported a narrower-than-expected surplus for the broadest measure of trade.
The yen fell against all 16 major peers after a report showed Japanese investors bought foreign bonds for a fifth straight week in the period ended Aug. 2. The euro held a two-day gain against the U.S. currency before German data today forecast to show June’s trade surplus widened.
“Japan’s current-account surplus was smaller than expected and that is a very important reason why dollar-yen will keep on its upward trend,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. (CBA) “We expect to see further declines in the yen.”
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