The yen also dropped as Asian stocks climbed to a five-week high, stoking carry trades. The dollar rose against the pound and the Swiss franc on speculation the Federal Reserve is close to ending the biggest series of interest-rate cuts since 1984. The Fed will release minutes tomorrow of its March 18 meeting, at which two policy makers called for ``less aggressive action.''
Japan's currency fell 1.1 percent to 102.56 against the dollar as of 7:22 a.m. in New York, from 101.47 yen in New York on April 4. The Japanese currency declined 1.3 percent against the euro to 160.91, from 159.69. The dollar strengthened to $1.5690 per euro, from $1.5737. It rose to $1.9864 per pound, from $1.9932.
The yen fell the most against the rand and New Zealand dollar, where central bank interest rates are as high as 11 percent. Benchmark Japanese government bonds yield 1.33 percent, compared with 8.91 percent for South African 10-year notes. High-yielding currencies such as the rand rose as stocks around the world gained, with the MSCI World Index climbing 0.3 percent, its fifth straight advance.