American focus: dollar is strengthening
The euro fell to more than a decade low against the yen as European finance ministers weighed the threat of a default in Greece, which is making fresh budget cuts to secure an international bailout. The 17-nation currency slid an eight-month low against the dollar.
The yen rose against all its major counterparts as Japan’s biggest manufacturers remained below levels seen before a record earthquake in March. The yen climbed against the dollar after the Bank of Japan said today its quarterly Tankan index of sentiment increased to 2 in September from minus 9 in June. The reading was below the reading of 6 in March, encouraging investors to take refuge in Japan’s currency.
Canada’s dollar rose as much as 0.7 percent before trading up 0.2 percent to C$1.0485 per greenback.
The pound fell against all its major counterparts excluding the South Korean won as traders judged a surprise increase in U.K. manufacturing as insufficient to keep the Bank of England from providing further stimulus for the economy. Bank of England policy makers said in minutes of last month’s policy meeting on Sept. 8 that it is becoming “increasingly probable” that another round of government-bond purchases may be needed to boost the economy.