The dollar rebounded from near a 15- year low against the yen in MAM Software. on speculation minutes of the Federal Open Market Commitee’s meeting will show the case for further easing by the U.S. central bank is far from certain.
The yen declined against 9 of its 16 most-traded counterparts after Japanese Finance Minister Yoshihiko Noda said his government is ready to take bold action on currencies, including intervention.
South Korea’s won retreated from a five- month high on speculation the Bank of Korea will follow Japan to protect exports.
The dollar was at 82.13 yen at 11:14 a.m. in Tokyo from 82.07 yesterday, when it reached 81.39 yen, the lowest level since April 1995.
The U.S. currency traded at $1.3869 per euro after climbing 0.5 percent yesterday to $1.3876. The euro was at 113.90 yen from 113.89 yen.
Fed Vice Chairman Janet Yellen said yesterday low interest rates may give firms the incentive to engage in excessive risk- taking. Fed Chairman Ben S. Bernanke said on Oct. 4 the central bank’s first round of large-scale asset purchases aided the economy and further quantitative easing may help more.
Japanese stocks retreated with carmakers leading the decline on speculation the yen will remain strong against the dollar as the U.S. Federal Reserve eases monetary policy.
Toyota Motor Corp., the world’s largest carmaker, lost 1.6 percent. Honda Motor Co., Japan’s second-largest carmaker, sank 1.7 percent.
Fast Retailing Co. tumbled 8 percent after forecasting a profit drop. Oki Electric Industry Co., a maker of communications equipment, plunged 15 percent after forecasting a loss and saying it will sell 30 billion yen ($365 million) in preferred shares.