Yen Slumps as Manufacturing Data Damps Safety Bid; Aussie Rises

The yen dropped to a one-month low against the dollar as reports showed manufacturing in China and Europe expanded and the threat of imminent military action against Syria eased, damping demand for haven currencies.

Japan’s currency slid at least 0.7 percent versus all of its 16 major peers as Prime Minister Shinzo Abe won backing for a sales-tax increase, signaling he is making progress on policies that have helped weaken the yen. Australia’s dollar gained on China’s improving growth prospects. The pound rose to a two-month high versus the euro after a gauge of U.K. manufacturing increased more than analysts forecast last month.