Yen Drops as China Stimulus Bets Sap Demand for Haven

The yen declined against most of its 16 major peers amid speculation the People’s Bank of China will act to support growth in the world’s second-biggest economy, sapping the allure of the relative safety of Japan’s currency.

The yen halted its gain versus the dollar from yesterday after International Monetary Fund Deputy Managing Director Naoyuki Shinohara said the fund maintains its view that intervention can be used to avoid disorderly moves in the currency market. Australian’s dollar rallied from a three-month low reached as Chinese stocks climbed. Gains in the euro were limited before data from Italy tomorrow that economists say will show the nation’s industrial production dropped.