The yen touched the strongest in three weeks after bearish bets slid to a six-week low and as investors weigh the outlook for a reduction in Federal Reserve monetary stimulus before policy makers speak this week.
The Bloomberg Dollar Spot Index dropped on Jan. 10 by the most in almost three months after a U.S. government report showed jobs rose less than the most pessimistic projection in a Bloomberg News survey. Japan’s currency rose against the euro, adding to a two-week advance, before data economists say will show Italian industrial output growth slowed. Australia’s dollar touched a one-month high against the greenback after home-loan growth exceeded expectations.
“We do look for consolidation below 105 in the first quarter before it marches higher,” said Sacha Tihanyi, a Hong Kong-based strategist at Scotiabank, referring to the dollar-yen rate. “A lot of it is going to be positioning-driven.”
Bloomberg
