Dollar Rebounds as Yen and Gold Slide

The dollar pared its weekly loss as the yen and pound slumped, while gold headed for its longest slump in three months. Asia equities were mixed at the start of Lunar New Year holidays.

The greenback rose against all of its major peers. The yen extended its biggest decline in a week and Japanese bonds rose as the nation’s central bank stepped in to buy debt. The pound also slid ahead of British Prime Minister Theresa May’s meeting with Donald Trump, while the peso fell for a second day as souring relations between Mexico and the U.S. pushed the countries closer to a trade war. Gold hit its lowest in nearly three weeks.

A global equities rally slowed as corporate results from Caterpillar Inc. to Microsoft Corp. delivered a mixed picture on the state of the American economy ahead of the Federal Reserve meeting next week. The Bank of Japan also meets next week and is expected to leave policy unchanged as recovering exports, strength in production and buoyant oil prices support reflation.

Markets in China, South Korea, Taiwan and Vietnam were closed Friday for the start of Lunar New Year. Hong Kong, Malaysia and Singapore had shortened sessions.

Here are the main moves in markets:

Currencies

· The Bloomberg Dollar Spot Index added 0.3 percent after jumping 0.6 percent Thursday. The measure is down 0.3 percent for the week, headed for a fifth straight weekly decline — the longest stretch since May 2015 — after rising to the highest in more than a decade in early January.

· The yen slid 0.6 percent to 115.18 per dollar as of 3:50 p.m. in Tokyo, after dropping 1.1 percent the previous session. The currency is down 0.4 percent for the week, its worst showing since Dec. 16.

· The pound fell 0.4 percent following a 0.3 percent decline Thursday, though it remains in line for a 1.4 percent weekly gain.

· The peso dropped 0.6 percent, extending Thursday’s 0.7 percent retreat. Mexico’s president scrapped his trip to Washington after Donald Trump doubled down on campaign pledges to rewrite the North American Free Trade Agreement and charge his southern neighbour to build a border wall.

Stocks

· The Topix rose 0.3 percent, bringing it near its highest point in more than a year.

· The MSCI Asia Pacific Index was poised for its highest close since Sept. 27 but gave up gains, falling 0.1 percent.

· Australia’s S&P/ASX 200 Index rose 0.8 percent as the nation’s markets reopened after a holiday. Hong Kong’s Hang Seng Index slipped 0.1 percent, while Singapore’s Straits Times Index added 0.4 percent for its highest close since October 2015. India’s Sensex Index gained 0.9 percent after a holiday Thursday and was poised for its strongest closing level in three months.

· Futures on the S&P 500 Index were down 0.1 percent. The benchmark slipped 0.1 percent Thursday after rising past 2,300 for the first time. The Dow Jones Industrial Average extended an all-time high.

Bonds

· Japanese 10-year yields fell one basis point to 0.08 percent. The BOJ boosted the amount of 5-to-10-year bonds it buys in its outright purchase operations, underscoring a commitment to keep its yield-curve target.

· Australian 10-year yields jumped five basis points to 2.78 percent.

· The yield on 10-year Treasuries was up one basis point at 2.51 percent. It slipped one basis point Thursday after an auction of $28 billion in seven-year notes drew a record amount of buying from indirect bidders, signalling interest from foreign central banks and mutual funds.

Commodities

· Gold retreated 0.5 percent to $1,182.71 an ounce after dropping 1 percent Thursday. It is headed for a fourth straight loss, which would be the longest slump since October.

· West Texas Intermediate crude was at $53.75 a barrel, down 0.1 percent after surging 2 percent Thursday on optimism that OPEC and other producing nations would adhere to their pledged output cuts.

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