Yen Extends Drop Past 101 Per Dollar After Bonds Data

The yen fell beyond 101 per dollar for the first time since April 2009 after a government report showed Japanese investors boosted holdings of overseas bonds and investors speculated on improving prospects of the U.S. economy.

The Dollar Index extended its biggest two-day rally since July, triggering plunges in oil, gold and Treasuries. Japan’s currency weakened against all of its 16 major counterparts as investors ended the longest streak of foreign bond sales since January 2010, boosting speculation Bank of Japan stimulus measures are driving local investors to seek higher returns overseas. The Australian dollar dropped below parity with the buck for the first time since June after the Reserve Bank this week cut interest rates to a record.