The yen retreated from the strongest in four weeks against the dollar before the Federal Reserve concludes a two-day policy meeting today.
The yen has been the biggest gainer among the 10-currency Bloomberg Correlation-Weighted Indexes in the past week as tumbling oil added to concern the global economy will falter, boosting demand for havens. The ruble collapsed to a record yesterday even after Russia increased borrowing costs to the most since 1998. A gauge of emerging-market currencies fell to a 12-year low. New Zealand’s kiwi declined after the South Pacific nation’s current-account deficit widened.
“Dollar-yen moves have been volatile,” said Kazuo Shirai, a trader at MUFG Union Bank NA in Los Angeles. “Commodity-related currencies in emerging markets seem to be in a panic state as oil continues to fall. Where we go from here in dollar-yen depends on the Fed meeting.”
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