The yen advanced to a four-week high against the dollar as the tumbling Russian ruble added to deepening concern that the global economy is faltering, boosting haven demand.
Japan’s currency pared gains as oil trimmed its drop to a five-year low. The ruble collapsed to a record even after Russia increased borrowing costs to the most since 1998. The greenback fell as the Federal Reserve begins a two-day policy meeting. Norway’s krone dropped to parity with the Swedish krona for the first time since 2000 as the plunge in oil diminished the nation’s economic outlook. A gauge of emerging-market currencies fell to a 12-year low.
“The market is looking for some stabilization,” said Fabian Eliasson, who works in foreign-exchange sales at Mizuho Financial Group Inc. in New York. “It’s like a triple-whammy” for Russia, with economic sanctions, declining oil prices and a falling ruble.
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