The yen strengthened against the dollar for a second day after its 5.5 percent drop over the past month prompted criticism from leaders around the world that recent exchange-rate moves have been excessive.
Japan’s currency pared gains as risk appetite improved and stocks erased losses. The yen rose earlier after touching a 30- month low on Jan. 14 as the nation’s policy makers moved to boost inflation and spur growth. A gauge of volatility increased to a four-month high as Russia’s central bank said the world’s leading economies are on the brink of a “currency war.” South Africa’s rand rose from the weakest level this year.
“You’re waiting for the next piece of news to push the yen above the 90 level,” Fabian Eliasson, vice president of corporate foreign-exchange sales at Mizuho Financial Group Inc. in New York, said in a telephone interview. “A lot of the inflation target of 2 percent and the previous intervention has already been priced into the market.”
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