The dollar strengthened to a seven-year high against the yen before the Federal Reserve releases minutes of its last meeting, when it ended a bond-buying program. Treasuries and German bunds declined while stocks rose in Europe and the pound gained.
The U.S. currency appreciated 0.6 percent to 117.60 yen at 8:19 a.m. in New York. The pound gained 0.3 percent to $1.5675 after Bank of England minutes showed some policy makers raised concern that inflation may accelerate. The 10-year Treasury yield increased two basis points to 2.34 percent. The Stoxx Europe 600 Index added 0.2 percent and Standard & Poor’s 500 Index futures slipped 0.1 percent after the gauge closed at a record. Russia sold less than 10 percent of bonds offered at its first auction in six weeks. Iron ore tumbled to the lowest level in more than five years.
While the Fed maintained a pledge to keep interest rates low for a “considerable time, policy makers cited an improving job market at their October meeting. Officials, including New York Fed President William C. Dudley, have said they expect to raise U.S. borrowing costs next year. Bank of Japan Governor Haruhiko Kuroda warned inflation could fall below 1 percent, after Prime Minister Shinzo Abe called an early election and postponed a sales-tax increase yesterday.
‘‘Expectations are for the Fed to reiterate its hawkish change in stance,’’ Michael Sneyd, a currency strategist at BNP Paribas SA in London. ‘‘We have bullish expectations for the dollar and we think the Fed minutes will support that view.’’
European bonds fell after European Central Bank policy maker Klaas Knot said he was skeptical about the benefits of quantitative easing.