The yen headed for its first back-to-back weekly gain in more than three months as weakness in some of the world’s biggest economies spurred demand for havens.
The dollar traded near the lowest in almost two months against its Japanese peer as Federal Reserve Chair Janet Yellen said the U.S. has “further to go to achieve a healthy economy,” following data yesterday that showed inflation accelerated while industrial production unexpectedly fell. The euro was set for a second weekly decline versus the yen after growth in the currency bloc missed economist forecasts, adding to speculation the European Central Bank will boost measures supporting expansion.
“There are problems and I do think they will start to drain on sentiment in the next couple of months, and potentially the yen will be one of the main beneficiaries,” said Derek Mumford, director at Rochford Capital, a currency risk-management company in Sydney. “I’m a little bit concerned that the U.S. dollar could break some levels to the downside and we get another selloff.”