Bloomberg News

Dollar Extends Drop Versus Yen to Longest Period in Seven Months

May 01, 2013

The dollar fell for a sixth day against the yen, the longest losing streak in seven months, before U.S. data due tomorrow forecast to show factory orders dropped and the jobless rate failed to decline.

The euro weakened versus the yen for the first time this week ahead of a report that may confirm contraction in the region’s manufacturing industry deepened and amid bets the European Central Bank will cut interest rates today. Japan’s currency climbed against most of its major peers as Asian stocks declined, boosting demand for haven assets.

“There’s a good chance U.S. economic indicators will remain weak for the time being, continuing to weigh on the dollar,” said Noriaki Murao, a New York-based managing director of the marketing group at the Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s largest listed financial group. “The market hasn’t fully priced in a rate cut by the ECB, so we’re likely to see a bit of euro selling if it comes about.”

The U.S. currency lost 0.2 percent to 97.17 yen as of 9:40 a.m. in Tokyo. The six-day decline is the longest since September. The euro dropped 0.3 percent to 127.99 yen and was little changed at $1.3172.

The MSCI Asia Pacific Index of shares fell as much as 0.2 percent.

The Federal Reserve said yesterday it will maintain the pace of its bond buying and is prepared to alter the amount as economic conditions evolve.

Some Bank of Japan board members said a “great opportunity” existed to end deflation, according to minutes of the BOJ’s April 3-4 meeting released today. At that gathering, the central bank decided to switch its policy target to the monetary base from borrowing costs. It will double holdings of government bonds and stock funds in two years to achieve 2 percent annual inflation, the BOJ said at that time.

The nation’s monetary base jumped 23 percent last month, the most in two years, data from the BOJ showed today.

To contact the reporters on this story: Masaki Kondo in Singapore at; Candice Zachariahs in Sydney at

To contact the editor responsible for this story: Rocky Swift at

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