The yen weakened from an almost six-week high versus the dollar as Chinese data signaled optimism for economic growth and fueled demand for riskier assets.
The Japanese currency dropped against 14 of its 16 major peers as the Tankan report showed areas of weakness in the nation’s economy, fueling speculation the Bank of Japan will ease policy further. The pound touched the highest level in more than five years versus the dollar after U.K. manufacturing growth unexpectedly accelerated. Expectations for currency price swings slumped to a record low.
“It seems to be a little bit more risk-on,” Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York, said by phone. “The dollar is getting a little bit of a push.”