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.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.