The yen held its first gain in nine days against the dollar on speculation data tomorrow will show Tokyo inflation quickened the most in more than two decades, damping the chances of additional Bank of Japan stimulus.
The euro remained higher after a two-day advance against its U.S. peer before a report today forecast to show a gauge of German business conditions climbed to a two-year high. U.S. data today may indicate orders for durable goods grew at a slower pace in March. New Zealand’s dollar strengthened against all its major peers after the central bank raised its benchmark rate for the second time in two months and increased its growth estimate for the year ended March.
“Both the BOJ and the market are paying close attention to the Tokyo CPI data, the first reading after the sales tax increase,” said Yujiro Goto, a senior currency strategist at Nomura International Plc in London. “Much higher numbers may raise expectations the BOJ will revise its inflation forecast and push back the timing of additional stimulus. The CPI data could be a trigger for yen strength.”
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