The yen dropped to the lowest level in a week versus the dollar as traders increased bets that global policy makers will keep borrowing costs low for longer, damping demand for haven assets.
The dollar declined earlier after a report showed retail sales were little changed in July on tepid wage growth. Sterling fell to an almost four-month low after the Bank of England highlighted lack of wage growth. Brazil’s real fluctuated after presidential candidate Eduardo Campos died in an airplane crash in the city of Santos. Australia’s dollar rose as consumer confidence improved and retail sales climbed in China. Stocks gained globally.
“The story in the Group of 10 is really a divergence of economic-growth outlooks between competing central banks,” said Mark McCormick, a foreign-exchange strategist at Credit Agricole SA in New York. “In Japan, we had the weak gross domestic product data, which brings back on the table the potential for further easing from the Band of Japan, perhaps in 2015.”
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.