USD/JPY Rallies to 102.60 as Haven Demand Ebbs

The yen declined for the first time in three days as demand for the safest assets eased amid a better-than-projected financial forecast from Caterpillar Inc. and a gain in a gauge of business confidence in Germany.

Japan’s currency touched the strongest level versus the dollar in almost seven weeks earlier after emerging-market assets dropped last week. The yen reversed gains as Turkey’s lira rebounded from a record low after the central bank said it would stabilize prices and South Africa’s rand pared losses. Australia’s dollar climbed, and U.S. Treasuries fell.

“The yen is always a bellwether for these types of issues,” Richard Franulovich, chief currency strategist for the northern hemisphere at Westpac Banking Corp. in New York, said in a telephone interview. “If anything, the sore points in China and Turkey have been seemingly addressed for the time being. I don’t think you can be relaxed, there are still a lot of other things going on.”


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