The yen remained lower versus the euro following a decline in November, the biggest in seven months, before Bank of Japan Governor Haruhiko Kuroda speaks today.
Demand was limited for Japan’s currency, which dropped versus most of its 16 major counterparts last month, after capital spending in the nation climbed in the third quarter. Data yesterday showed the Purchasing Managers’ Index in China grew last month more than economists predicted. The euro traded near its peak in November before figures that may confirm a fifth-straight period of manufacturing growth in the region, while the pound strengthened before a factory output reading that may indicate an eighth month of expansion.
“The better-than-expected China PMI should support stocks and weaken the yen,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “If yen selling accelerates into London trading, I think we can break into the 103-per-dollar level.”
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