Currencies

Dollar, Yen Advance as Decline in Stocks Reduces Demand for Higher Yields The dollar rose against most of its major counterparts and climbed for a second day against the euro as investors sold shares to reduce the chance of losses before the end of the year.

State Street Cuts Commodity-Currency Bets on Stimulus Reduction Outlook State Street Global Advisors has pared its bullish bets on currencies of commodity exporters, such as the Australian dollar, on expectations central banks may start withdrawing economic stimulus measures in six months.

China Sidesteps Yuan Criticism as Zhou Says Government Passive on Dollar China is “passive” on the value of the U.S. dollar, central bank Governor Zhou Xiaochuan said, signaling that policy makers aren’t yet prepared to loosen controls on the yuan.

Chile Peso Volatility to Dive After Best World Gain, Societe Generale Says Societe Generale is recommending investors make bets that the Chilean peso will hover in a “narrow” range after central bank President Jose De Gregorio said he’s considering buying dollars to stem gains in the world’s top-performing currency.

Fed Makes Monitoring Capital Adequacy Foremost Concern Amid Talk of Bubble Federal Reserve officials are stepping up scrutiny of the biggest U.S. banks to ensure the lenders can withstand a reversal of soaring global-asset prices, according to people with knowledge of the matter.

Dollar May Decline to 11-Month Low of About 87 Yen: Technical Analysis The dollar may decline to an 11- month low of about 87 yen, according to Tokai Tokyo Securities Co., citing trading patterns.

Canadian Currency Weakens for a Fourth Day as Investors Shun Equities, Oil Canada’s dollar depreciated for a fourth straight day, the longest losing streak in more than two months, as global stocks and crude oil dropped and the U.S. currency rose against most of its major counterparts.

Pound Falls Versus the Dollar, Euro and Yen on U.K. Budget-Deficit Concern The pound fell against the dollar, the euro and the yen on concern that the U.K.’s worst budget deficit since records began will hamper the nation’s recovery.

`Overvalued' U.K. Housing Market May Not Return to Peak Prices Until 2014 U.K. house prices will probably fall next year, and it may take until 2014 to return to the levels at the 2007 peak of the country’s biggest housing boom, according to a Bloomberg survey.

Rand Set for First Weekly Drop in Three on Concern Rally Harming Economy The rand declined for the first week in three as South African labor unions, politicians and the central bank raised concerns that its 25 percent rally against the dollar this year was harming the economy.

Goldman Sachs Transfers Denis Coleman to Europe as Head of Credit Finance Denis Coleman, the co-head of Goldman Sachs Group Inc.’s U.S. leveraged finance business, is being transferred to Europe to oversee bank loans, high-yield capital markets and restructuring.

Russia Waives Ukraine Gas Penalties, Easing Threat of Supply Cut to Europe Russia agreed to waive fines on Ukraine for consuming less gas than contracted and said it would renegotiate volumes for next year, easing a threat to shipments of the fuel to Europe.