The yen weakened on prospects Tokyo’s winning bid to host the 2020 Olympics may boost construction and tourism, reviving confidence in Prime Minister Shinzo Abe’s plan to reflate the economy.
The Australian dollar gained after China’s exports increased more than estimated in August, adding to evidence the world’s second-largest economy is rebounding. The U.S. currency held gains versus the euro from last week and surged against the yen amid expectations the Federal Reserve will reduce its $85 billion in monthly bond purchases this month.
“Victory for Tokyo’s Olympics bid is seen as helping to renew faith in Abe and his efforts to reflate the economy so that’s weighing on the yen,” said Mike Jones, a currency strategist in Wellington at Bank of New Zealand Ltd. “Chinese trade numbers provided further evidence of stabilized growth.”
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