The yen rose, set for the first gain in seven trading sessions, as technical indicators signaled the currency’s recent decline was too rapid. The euro touched an 11-month low against the dollar.
Japan’s currency strengthened versus all of its 16 most-traded counterparts as investors sought haven assets before the presidents of Russia and Ukraine meet today. The euro weakened versus the yen after European Central Bank President Mario Draghi said on Aug. 22 inflation expectations have declined, increasing speculation policy makers will expand stimulus. New Zealand’s dollar fell to the lowest in six months after the nation’s trade balance slipped into deficit.
“The fact that dollar-yen was overbought might see it pull back a little bit to a more reasonable level,” said Stan Shamu, a market strategist at IG Ltd. in Melbourne. Geopolitics “could be a driver as well, because it strengthens the yen,” Shamu said.
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