Yen Gains as Aso Rules Out Foreign Bond Purchases; Aussie Climbs
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The yen strengthened for the first time in three days against the dollar and euro as Japanese finance minister Taro Aso said the government doesn’t intend to buy foreign bonds to end deflation by weakening the currency.
The yen rose from almost the weakest since May 2010 versus the U.S. currency as Aso’s comments countered those of Prime Minister Shinzo Abe, who said yesterday purchasing overseas bonds “exists as one idea.” South Africa’s rand gained even as clashes between labor unions at a mine spurred concern of a repeat of violence that curbed production last year. Australia’s dollar strengthened as the central bank said an improved global outlook boosted commodity prices.