Yen Gains as Oil Hurts U.S. Inflation Outlook While Kiwi Rises
- Dollar to remain capped if energy prices stay low: Barclays
- N.Z. dollar climbs as central bank unperturbed by FX gains
Japanese 10,000 yen banknotes are arranged for a photograph in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The yen strengthened for a third day against the dollar as weak energy prices damped the outlook for U.S. inflation, casting doubt on the Federal Reserve’s ability to keep raising interest rates.
Japan’s currency rose against all its 16 major peers, including a surge at around the time of the Tokyo fixing. A Treasury market gauge of U.S. inflation expectations dropped Wednesday to the lowest level in eight months. New Zealand’s dollar advanced after the central bank indicated it wasn’t overly concerned about the currency’s recent strength.