The yen slid for a fifth day versus the greenback as the extra yield offered by two-year Treasuries over similar-maturity Japanese bonds increased to a six-month high. The Dollar Index (DXY) rose before a U.S. report that economists said will show existing home sales increased. The pound weakened after Bank of England minutes showed two policy makers voted for a larger increase in asset purchases than the amount finally agreed.
“With the U.S. economy rehabilitating, the trend in yields is up and there may be more upside” to the dollar against the yen, said Lauren Rosborough, a senior foreign-exchange strategist at Societe Generale SA in London. “When domestic investors in Japan can see an improving yield offshore, then they would be looking to sell out of yen and buy the dollar.”
