USD/JPY back above 104 as Japan’s Current-Account Deficit Widens

The yen fell the most in four weeks versus its U.S. peer after a government report showed Japan’s current-account deficit widened to a record in November.

The dollar gained for the first time in four days as U.S. retail sales rose more than forecast in December, giving the world’s biggest economy a lift at the end of 2013. The Swedish krona strengthened as a report showed inflation was faster in December than economists forecast. South Africa’s rand slid to a five-year low against the dollar on speculation labor disputes at platinum producers will reduce exports.

“Dollar-yen is a bet everyone wants to be long on — investors are buying on a dip because of the Japanese data,” said Vassili Serebriakov, a foreign-exchange strategist at BNP Paribas SA, by phone from New York. A long position is a bet an asset, in this case the dollar, will appreciate. “The retail sales report makes the payroll numbers look more one-off instead of the economy looking to be on a soft patch.”

Bloomberg

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