Currencies

Yen Erases Losses on Speculation China Will Take Credit Tightening Steps The yen erased earlier declines against the euro and the dollar on speculation China will take extra measures to slow its economy by tightening credit, boosting demand for the safety of Japan’s currency.

Japan Increasingly Likely to Sell Yen to Curb Gains, Morgan Stanley Says Japan is increasingly likely to intervene in foreign-exchange markets to stop the yen from rising, according to Morgan Stanley, citing its own model.

Yen to Drop to 100 as Deflation Spurs BOJ to Add Cash, CIB's Kotecha Says The yen is likely to weaken to 100 per dollar, a level last seen in April, as the Bank of Japan pumps money into the financial system to combat deflation, according to Credit Agricole Corporate and Investment Bank.

Dollar to Keep Reserve Role If Markets Stay Sound, Standard & Poor's Says The dollar will retain its status as the world’s reserve currency as long as U.S. financial markets are sound and government spending is sustainable, Standard & Poor’s said.

Venezuela Bolivar May Sink as Low as 9 Per Dollar This Year, Barclays Says Venezuela’s bolivar may fall as low as 9 per dollar in the “worst scenario” as the government refrains from selling U.S. currency in the unregulated market to preserve foreign reserves, Barclays Plc said.

Canada Dollar Gains for 10th Day Before Jobs Report as Stocks, Crude Rise Canada’s dollar traded near the strongest level in five months against the greenback as crude oil and stocks gained before a report tomorrow forecast to show the nation’s economy added jobs in February.

Mexico Peso Gains to Three-Month High on Demand for High-Yielding Assets Mexico’s peso rose to the strongest level since December as a rally in U.S. stocks fueled demand for higher-yielding emerging-market assets.

Euro May Break Resistance to 5-Week High Against Yen: Technical Analysis The euro may rise to a five-week high against the yen after breaking through a key level of resistance, Ueda Harlow Ltd. said.

British Pound Strengthens Against Dollar, Euro After BOE Inflation Survey The pound strengthened, snapping a three-day decline against the dollar and the euro, after U.K. inflation expectations climbed to the highest since November 2008, fueling speculation interest rates may rise.

Hildebrand Says Swiss Central Bank Will Tighten Policy Stance Eventually Swiss central bank head Philipp Hildebrand said officials won’t keep interest rates close to zero indefinitely as the economy shows signs of recovery.

Goldman Sachs Lowers Forecasts for Euro on Growth, Pound on U.K. Election Goldman Sachs Group Inc. cut its forecasts for the euro against Norway’s krone, the Swiss franc, the Swedish krona and Polish zloty, citing an “increasing focus on growth differentiation.”