Asian session: The yen fell
The yen fell against most of its major counterparts before reports this week that economists said will show European producer-price inflation accelerated and U.S. services industries grew, reducing demand for safer assets.
Japan’s currency touched a 10-month low versus the euro as gains in stocks around the world spurred demand for higher- yielding currencies.
The euro reached a five-month high versus the dollar on speculation the European Central Bank will raise interest rates as soon as its April 7 meeting.
The MSCI Asia Pacific Index of shares rose 0.4 percent after the MSCI World Index advanced 0.5 percent on April 1. The VIX Index, a measure of market volatility known as Wall Street’s “fear gauge,” dropped 2.9 percent last week, indicating traders are becoming more confident about stock market gains.
The euro gained 1.1 percent last week amid speculation European policy makers will increase borrowing costs as early as this week to contain inflation.
EUR/USD: the pair bargained within the limits of $1,4210-$ 1,4270.
GBP/USD: the pair shown maxima in the field of $1,6170 then slightly decreased.
USD/JPY: the pair bargained within the limits of Y84,00-Y84,40.
UK: UK data starts at 0828GMT with Construction PMI for March