Yen Climbs as Abe Slackens Stimulus; Pound Drops

The yen strengthened for the first time in four days against the dollar after the Bank of Japan refrained from adding to a stimulus plan that sent the currency tumbling when it was expanded in October.

The yen strengthened 1 percent to 117.60 per dollar. It appreciated 0.8 percent to 136.13 versus the euro. The shared currency climbed 0.2 percent to $1.1577.

The yen rose after the BOJ’s decision disappointed some investors who had expected the central bank to boost its record stimulus plan last expanded on Oct. 31, according to Satoru Igarashi, a senior foreign-exchange strategist at Mizuho Securities Co. in Tokyo.

Sterling’s Drop

Sterling fell against all of its 16 major peers after policy makers Martin Weale and Ian McCafferty dropped their calls for an interest-rate increase, leaving the Bank of England’s nine-member Monetary Policy Committee voting unanimously to maintain rates at a record-low 0.5 percent.

The pound weakened 0.4 percent to 76.58 pence per euro, after reaching 75.96 pence per euro on Jan. 16, the strongest level since February 2008. Sterling fell 0.2 percent to $1.5119.

Euro Bond Purchase Revives Euro

The euro rallied before the ECB sets monetary policy on Thursday. Policy makers will announce a 550 billion-euro bond-purchase program. That would top the 500 billion euros in models presented to ECB officials this month.