Currencies

Yen, Dollar Strengthen as China Inflation at 16-Month High; Aussie Weakens The yen and dollar rose versus their major counterparts after Chinese reports on inflation, factories and loans fueled concern the government will act to damp growth, boosting demand for the lowest-yielding currencies.

World Currency Trading Rises 17 Percent to $2.7 Trillion a Day, RBA Says Global currency trading rose to $2.7 trillion a day between April and October, the first growth since the six months to April 2008, the Reserve Bank of Australia said, citing data from five markets.

Goldman Lowers Forecasts for Euro on Growth, Pound Amid Election Concerns 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.”

Canadian Dollar Rises for 9th Straight Day on Outlook for Nation's Growth The Canadian dollar rose for a ninth day against its U.S. counterpart, the longest streak in five and a half years, as investors bet the nation’s economy will be among the strongest during the global recovery.

Chilean Inflation Swap Yields Fall to a Record Low on CPI Bets; Peso Drops Yields on Chile’s inflation-linked interest-rate swaps fell to a record as economists bet inflation will quicken amid boosted government spending and a shortage of goods following the country’s worst earthquake in 50 years.

Dollar Is `Critically Poised' Against Yen: Commerzbank Technical Analysis The dollar may rise against the yen should it break a key resistance level at 92.55, Commerzbank AG said, citing technical indicators.

Bank of America Cuts Forecasts for Euro on Lack of European Fiscal Unity Bank of America Corp. cut its forecasts for the euro for the end of March and June on expectations that a lack of fiscal unity among the nations that make up the monetary union will undermine the currency.

Brown Tries to `Perversely' Benefit From U.K. Relapse Risk Before Election Gordon Brown is trying to turn the threat of a double-dip U.K. recession into an advantage.

Swiss Central Bank May Keep Key Rate Unchanged As Economy Gains Strength The Swiss central bank may leave its benchmark interest rate near zero today to bolster a recovery from the worst recession in more than three decades.

Shun Spain's Bonds on `Death by 1,000 Cuts,' Invesco, Merrill Lynch Say Investors should avoid Spain’s bonds as the euro region’s highest levels of joblessness stifle the country’s ability to cut its budget deficit, according to Invesco Ltd. and Bank of America Corp.’s Merrill Lynch unit.

Latvia Elections May Hamper Austerity, Weigh On Credit Rating, Fitch Says Latvian elections this autumn threaten to hamper government efforts to push through austerity measures vital to its international bailout, burdening the country’s credit rating, Fitch Ratings said.