Aug. 10 (Bloomberg) — The yen gained, approaching a post- World War II high
versus the dollar, as the Federal Reserve’s pledge to keep interest rates at a
record until mid-2013 failed to convince investors global growth will be
sustained.
The euro extended its drop against the dollar as European stocks
fell amid speculation yesterday’s gains couldn’t be sustained. The Swiss franc
weakened after the nation’s central bank said it expanded measures to counter
the currency’s strength. The pound dropped after Bank of England Governor Mervyn
King said “headwinds” to growth are intensifying.
“A lot of people looked at the market yesterday and thought this
could be our chance to send the dollar lower and get into risk,” said Richard
Franulovich, a senior currency strategist at Westpac Banking Corp. in New York.
“But equities are coming in a little bit lower, and as a result the euro is
coming off, too.”
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