Yen Drops to 3 1/2-Year Low Against Euro; Dollar Declines
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The yen tumbled, reaching the weakest level in almost four years against the euro, as the Federal Reserve unexpectedly retained a monetary policy that prompts investors to borrow in low-interest-rate currencies to buy higher-yielding assets.
Japan’s currency slid against all 16 of its major peers after a central-bank policy maker said pressure may mount to expand stimulus. The dollar fluctuated against the euro after falling to a seven-month low as Fed policy makers maintained monthly bond purchases at $85 billion. Malaysia’s ringgit surged the most since 1998 and India’s rupee advanced. The pound weakened after U.K. retail sales unexpectedly fell.