The euro rose to a four-year high against the yen after a European Central Bank board member said policy makers must be “very careful” about using negative interest rates to counter low inflation.
The dollar touched a two-week low as Chicago Federal Reserve President Charles Evans said policy makers are waiting to see that the labor market “has improved substantially” before trimming the bond-buying program known as quantitative easing. Chairman Ben S. Bernanke speaks later. A gauge of global volatility fell to its lowest level this month. Economists forecast that a report tomorrow will show U.S. retail sales increased in October after dropping the previous month.
“There was suspicion the ECB might be on the verge of doing something aggressive, like QE and negative rates, but the commentaries from ECB we’ve had since than have been scaling back from it,” Geoffrey Yu, a senior foreign-exchange strategist at UBS AG in London, said in an interview. “Maybe there’s some correction to that.”