The dollar fell the most in more than a week against the yen as investors gauge the timing of Federal Reserve interest-rate increases after reports showing a strengthening jobs market.
The Bloomberg Dollar Spot Index rose earlier after Goldman Sachs Group Inc. brought forward its interest-rate forecast. Brazil’s real fell the most among major currencies as economists surveyed by the central bank lowered their 2014 growth outlook. South Africa’s rand slumped as a strike by metal workers entered a second week. Indonesia’s rupiah strengthened the most in more than seven months before presidential elections this week.
“Although we had a relatively good jobs report, you really don’t have the big case for inflation and a rates-higher story yet,” Brad Bechtel, managing director at Faros Trading LLC in Stamford, Connecticut, said in a phone interview. “Yields will remain relatively contained, and that’ll keep the dollar relatively contained as well.