The yen and the dollar weakened against higher-yielding currencies as stocks gained, spurring investors to favor riskier assets. Japan’s currency also fell as a gauge of expected movements in foreign-exchange markets declined to the lowest level since September, signaling a lower risk of fluctuations that can undermine so-called carry trades. South Korea’s won rose the most versus the dollar among the 16 most-active currencies after the government sold bonds overseas for the first time in more than two years to bolster its foreign-exchange reserves. “Currencies are generally tracking equity markets,” said Adam Cole, global head of currency strategy in London at Royal Bank of Canada. “The currency market fluctuated this week as it seeks a clearer picture of risks. We still believe the dollar will head upward in a longer term because the dynamic from the policy stance is positive for it.” The yen declined to 132.59 per euro as of 7:30 a.m. in New York, from 132.48 yesterday. Japan’s currency weakened to 71.15 to the Australian dollar, from 70.84. The yen fell to 100.15 against the greenback, from 99.76. The euro weakened to $1.3240 from $1.3282. Trading in currencies may be more subdued than usual as the Easter holiday begins tomorrow, Cole said. The yen fell against 14 of the 16 most-traded currencies as the MSCI World Index of global shares advanced 0.8 percent. Futures on the Standard & Poor’s 500 Index rose 0.6 percent.

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