Yen Climbs a Third Day on Bond Yield Concern; Rand Drops
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The yen strengthened for a third day against the dollar amid concern the Bank of Japan is struggling to control a jump in government bond yields.
The yen gained versus most of its 16 major peers after BOJ Governor Haruhiko Kuroda said yesterday Japan could cope with rising interest rates. Yields on JGBs rose to the highest in more than a year on May 23, damping the appeal of selling the yen in search of higher yields elsewhere. Futures traders increased bets to the most since July 2007 that the yen will fall against the dollar. South Africa’s rand slid before a report tomorrow that is expected to show growth slowed.