The yen dropped against most of its major counterparts as traders speculated that Japan sold the currency to protect exporters. The currency slid as much as 1.1 percent against the dollar in the biggest intraday decline since Japan intervened on Sept. 15 before erasing its drop. The euro advanced against the dollar after a report showed German business confidence unexpectedly rose to the highest level in more than three years. “We can imagine that the Bank of Japan will intervene again in more depth, so traders should be very cautious,” said Roberto Mialich, a senior currency strategist at UniCredit SpA in Milan. The yen slid 0.7 percent to 113.14 per euro at 7:37 a.m. in New York, from 112.35 yesterday. Japan’s currency traded at 84.37 per dollar, compared with 84.38, after sliding to 85.40. The euro rose 0.7 percent to $1.3411, from $1.3314. Japanese government officials declined to comment on whether Prime Minister Naoto Kan’s administration had intervened in the currency market today after the yen slid against the dollar in Tokyo trading. “I won’t comment” on intervention, Finance Minister Yoshihiko Noda told reporters in Tokyo. Vice Finance Minister Fumihiko Igarashi earlier said that he hadn’t heard of any intervention, and a separate government official, speaking on condition of anonymity, declined to comment to reporters when asked whether Japan had sold yen. Yen Reports Nikkei Quick reported that some market sources, whom it declined to identify, denied that intervention occurred today. Kyodo News reported earlier today that Japan had likely sold yen and bought dollars, citing an unidentified market source. Noda publicly confirmed the Sept. 15 move within minutes of the start of the yen sales, which are ordered by his ministry and conducted by the Bank of Japan. Noda earlier today reiterated the government’s pledge to take “bold” action if needed. Europe’s common currency appreciated as the Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased this month to 106.8, the highest since June 2007, from 106.7 in August. The median forecast of 36 analysts in Bloomberg News survey was for a drop to 106.4. The Swiss franc gained as much as 0.7 percent to 97.86 centimes per dollar, matching the strongest since the beginning of data in 1971. The Swiss currency was later at 98.83 centimes. Bookings for U.S. goods meant to last at least three years fell 1 percent last month in the biggest drop in a year after rising 0.4 percent in July, according to the median forecast of 73 economists in a Bloomberg News survey. Sales of new homes may have climbed last month from a record low. Reports from the Commerce Department are due today. To contact the reporters on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net; Stephen Morris in London at smorris39@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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