The US dollar traded near a five-month high in Currency trading against the euro, after speculation about Asian stocks, which will continue falling in U.S. and European equities. This could reduce demand for riskier assets.

The yen closed to the strongest level in a month versus the euro when U.S. reports forecast to show a potential decrease in manufacturing in the Philadelphia region. The Japanese and U.S. currencies may also increase if U.S. banks report earnings, especially Goldman Sachs Group Inc.

Canada’s dollar dropped by the most in almost three months as oil fell and a report showed inflation increased in December below expectations, reducing the chances of the central bank rising interest rates before the second half.

The currency declined for a second day, touching the lowest level in more than two weeks, as stocks fell and the U.S. dollar rose against all of its major counterparts. Canadian government bonds climbed.