The yen weakened by the most since 2008 versus the dollar while European stocks and U.S. index futures rose after central banks intervened to weaken Japan’s currency. Oil reversed gains as Libya announced it will cease military actions and hold talks with opposition forces. The yen weakened against all 16 most-traded peers, sinking 2.8 percent versus the dollar at 9:19 a.m. in New York after falling as much as 3.7 percent. The Stoxx Europe 600 Index rose 0.9 percent and Standard & Poor’s 500 Index futures rallied 1.3 percent after Japan’s Nikkei 225 Stock Average surged 2.7 percent. Crude fell 0.7 percent to $100.72 a barrel after surging as much as 2.2 percent. Ten-year Treasury yields climbed 4 basis points to 3.30 percent. The yen retreated after yesterday jumping to a post-World War II high against the dollar amid speculation investors and companies were buying the currency to pay for rebuilding projects after Japan’s worst earthquake on record. Libya said it is ceasing military action and will start talks with the opposition, Foreign Minister Moussa Koussa said in a televised news conference carried by Al Arabiya TV. While the yen intervention “may seem to be a one-day operation, the statement also suggests their readiness to act further if need be,” Jim Reid, a strategist at Deutsche Bank AG, wrote in a note. “In the absence of any deteriorating nuclear news flows out of Japan the swings in oil prices will probably have a stronger influence over markets from now on.” Yen, Franc Japan’s currency slid 3.6 percent versus the euro, after earlier dropping as much as 4.5 percent. Japan began the currency intervention, with Europe’s central banks, the Bank of Canada and the Federal Reserve Bank of New York following up. The Swiss franc weakened against all of its major peers, except the yen, and the New Zealand dollar climbed against all but two of its major counterparts. The pound declined 0.6 percent against the euro after a report from Nationwide Building Society showed U.K. consumer confidence fell to a record low in February. To contact the reporter on this story: Andrew Rummer in London at arummer@bloomberg.net To contact the editor responsible for this story: Mark Gilbert at magilbert@bloomberg.net

Source