Yen Weakens on Speculation Abe Will Cut Taxes; Kiwi Appreciates

The yen weakened for the first time in five days against the dollar as speculation Japan’s government will cut corporate taxes spurred stock gains and damped demand for the relative safety of the currency.

Japan’s currency dropped against all of its 16 major counterparts as shares rallied on bets the tax cut proposed by Prime Minister Shinzo Abe will make companies more profitable. New Zealand’s dollar strengthened amid speculation the country’s central bank will be the first among developed nations to raise interest rates. The pound weakened against the dollar after a government report showed annual economic growth was less than earlier estimated.