USD/JPY Above 118.50 as Stimulus Curbs Hunger for Haven Assets

The yen dropped to almost a seven-year low versus the dollar as central banks worldwide add to monetary stimulus, damping demand for low-yielding haven assets such as Japan’s.

The 18-nation euro rose against the U.S. currency after European Central Bank Governing Council member Jens Weidmann said expanding bond purchases to government debt would face “legal hurdles.” Russia’s ruble added to its longest run of gains in more than a year, while Brazil’s real fell from a two-week high as President Dilma Rousseff refrained from announcing her choice for the position of finance minister.

“Dollar-yen is back at the highs,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “It’s still one of the most compelling macro stories.”

Bloomberg

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