USD/JPY around 99.80 on Bets Fed to Maintain Stimulus

The dollar fell for a second day versus the yen on speculation Federal Reserve speakers including Chairman Ben S. Bernanke will reiterate economic growth isn’t yet sufficient to trim stimulus.

The Bloomberg U.S. Dollar Index approached its lowest in more than a week after New York Fed President William C. Dudley said yesterday he’s more hopeful about the economy while indicating no change in bond buying. Australia’s currency held a two-day gain as minutes of its central bank’s meeting showed policy makers saw “mounting evidence” interest-rate cuts were working. The euro was near a two-week high before a report forecast to show German investor confidence increased.

“The U.S. dollar has been under pressure right across the board,” said Emma Lawson, the Sydney-based senior currency strategist at National Australia Bank Ltd. “Certainly, the doves are taking the fore at the moment. Most investors have moved away from any expectation of tapering in December” of bond buying from the Fed.

Bloomberg

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