Yen Declines as Current Account Shrinks; Pound Advances

The yen weakened against all of its 16 major counterparts as Japan’s current-account surplus shrank to the smallest on record and U.S. Treasury yields increased, reducing the advantage of owning Japanese assets.

Europe’s 18-nation currency traded at almost a one-month low after European Central Bank Vice President Vitor Constancio said its recent strength has had an impact. ECB President Mario Draghi said last week that policy makers would be “comfortable” with further stimulus next month. India’s rupee reached a nine-month high on speculation exit polls will show a victory for the main opposition party. The pound rallied as the Confederation of British Industry raised its growth forecast, bolstering estimates for a Bank of England interest-rate increase.