The yen weakened for a second day versus the dollar amid signs that turmoil in emerging markets is abating and as better-than-forecast consumer-confidence data and corporate earnings shored up investor optimism.
The lira jumped as Turkey’s central bank more than doubled its main interest rate at an extraordinary meeting. The greenback fell against most of 24 major developing-economy currencies as the Federal Reserve began a two-day gathering at which economists forecast it will cut monthly asset purchases by $10 billion. The Swiss franc slid along with the yen against the majority of 31 main counterparts as developing nations’ stocks ended a three-day rout, damping demand for haven assets.
“Emerging-market risk-aversion fears remain but are easing,” Rahim Madhavji, president at Knightsbridge Foreign Exchange in Toronto, wrote in an e-mail. “The U.S. dollar continues to attract flows as the U.S. economy is generally showing strength, and U.S. yields are creeping higher.”
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