Yen Rises as Officials Step Up Currency War Rhetoric

The yen strengthened against the dollar for a second day after its 5.5 percent drop over the past month prompted criticism from leaders around the world that recent exchange-rate moves have been excessive.

Japan’s currency pared gains as risk appetite improved and stocks erased losses. The yen rose earlier after touching a 30-month low on Jan. 14 as the nation’s policy makers moved to boost inflation and spur growth. A gauge of volatility increased to a four-month high as Russia’s central bank said the world’s leading economies are on the brink of a “currency war.” South Africa’s rand rose from the weakest level this year.