The yen rose from a six-month low against the dollar as investors awaited U.S. job data this week that may provide further evidence as to when the Federal Reserve will reduce stimulus that has weakened America’s currency.
Japan’s currency rallied versus the euro after weakening through 140 for the first time since October 2008 as a decline in European stocks spurred demand for safer assets. The 17-nation currency gained to almost a one-month high versus the dollar before the European Central Bank announces its next policy decision on Dec. 5. A measure of volatility among major currencies climbed to the highest level in seven weeks.
“The yen is taking a little bit of a break,” Sireen Harajli, a strategist at Mizuho Bank in New York, said in a phone interview. “I see it as a definitely a consolidation because you have some big numbers, some big events coming up — you have the ECB on Thursday and also payrolls on Friday.”
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