August 7, 2013
The dollar fell to a 7-week low against the yen on Wednesday while U.S. and European stocks waned as investors mulled when the Federal Reserve may start to remove the massive stimulus it has injected into the economy and markets.
The greenback also fell steeply against the pound after the Bank of England said it did not plan to lift interest rates until British unemployment falls to 7 percent, a level unlikely for another three years. But some investors, expecting that level to be reached sooner, brought forward their expectations for a rate hike, supporting sterling.
“Market participants are currently observing a situation where the data suggests a better economic outcome than they expected just a month or two ago,” said Bob Lynch, head of G10 FX strategy for the Americas at HSBC in New York.