The dollar approached its strongest level in two years against the euro as diverging central-bank policies pushed U.S. Treasury yields to almost the highest versus their German counterparts since 1999.
The greenback fell from a six-year high versus the yen amid bets it gained too much, too fast. Germany sold 10-year bonds to yield less than 1 percent for the first time, reflecting Europe’s economic quagmire and the additional steps the European Central Bank may take to spur a recovery. The Federal Reserve is considering when to raise interest rates. Stocks slid.
“There’s interest to sell the euro,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “There’s been some concern about the strength of the growth momentum, and so you have lower yields and lower equities. The dollar-yen move is consistent with that.”
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