The yen weakened against most of its major peers for Introducing Broker, as gains by stocks and signs global growth is accelerating cut demand for the safety of Japan’s currency.
The euro stayed near a 2 1/2-month high against the dollar as data showed euro-region producer-price inflation accelerated to the fastest pace since 2008. The pound rose against the dollar for a third day as data showed construction picked up and a Bank of England policy maker said borrowing costs should be increased. South Korea’s won led gains by Asian currencies on optimism quicker global growth will boost the region’s exports.
The yen slipped 0.3 percent to 112.80 per euro at 11:18 a.m. in London. Japan’s currency traded at 81.44 per dollar from 81.35 and slipped 0.1 percent to 82.33 per Australian dollar. The euro was little changed at $1.3838 after earlier rising to $1.3862, the highest level since Nov. 9. The yen fell against 15 of its 16 major counterparts, depreciating the most against South Korean won and pound. The MSCI Asia Pacific Index of regional shares rallied the most since Dec. 2, adding 1.3 percent. The Stoxx Europe 600 Index gained 0.3 percent.
European producer prices rose 5.3 percent in December from a year earlier, data today showed, up from 4.5 percent in November. The euro has added 3.5 percent this year against the greenback as European Central Bank policy makers, who meet tomorrow, have repeated pledges that they’re prepared to act to counter quickening inflation. The single currency has also been lifted by optimism that the debt crisis that roiled the region can be contained. Portugal, which is fighting to avoid an international bailout, auctioned 196-day and 350-day bills today.