Yen Drops Versus Dollar on Central-Bank Divergence
This article is for subscribers only.
The yen weakened for a second day against the dollar amid speculation the Federal Reserve will reduce monetary stimulus while the Bank of Japan maintains its bond-buying program, which tends to debase the currency.
The greenback pared gains versus the euro after U.S. retail sales rose less than forecast. The dollar was the best-performing major currency over the past six months amid bets the Fed will dial back its asset purchases. Australia’s dollar rose against most major peers after growth in China, its top trade partner, matched economists’ estimates in the second quarter.