The Swiss franc, yen and dollar dropped against most major counterparts as stocks advanced on speculation the world will avoid a return to recession, reducing demand for a haven.
The franc was the worst performer after Federal Reserve Chairman Ben S. Bernanke said last week in Jackson Hole, Wyoming, that the U.S. economy isn’t weak enough to warrant immediate additional stimulus.
The euro pared gains after inflation in several German states slowed in August as seasonal food and energy prices fell. The inflation rate decreased to 2.2 percent from 2.3 percent in Bavaria and to 2.3 percent from 2.7 percent in North Rhine-Westphalia. The rates in Hesse, Saxony and Brandenburg also eased.
The yen fell against higher-yielding currencies as Japanese Finance Minister Yoshihiko Noda, who has overseen three currency-market interventions in the past year, was chosen to succeed Prime Minister Naoto Kan.
EUR/USD: the pair shown high in $1.4550 area then decreased.
GBP/USD: the pair holds at $1.6400 area.
USD/JPY: the pair holds at Y76.70 arae.
US data include personal income/spending at 12:30 GMT.