The euro shot greater to a four-year high versus the yen after a European Central Bank board member stated that policy makers must be “very careful” about utilizing negative interest rates to counter low inflation. The dollar reached a two-week low as Chicago Federal Reserve President Charles Evans said policy makers are waiting to see that the labor market “has improved substantially” before cutting down the bond-purchasing program known as quantitative easing. Chairman Ben S. Bernanke speaks later. A gauge of global volatility moved lower to its weakest point this month. Economists prediction that a report tomorrow will display U.S. retail sales boosted in October after backing down the previous month. Krone, Koruna Norway’s krone rallied against all of its 16 of its most-traded counterparts after third-quarter gross domestic product increased 0.7 percent, exceeding the median economist forecast. The currency appreciated 0.3 percent to 8.2450 per euro after reaching 8.2070, the best performing markl since November 11. It gained 0.6 percent to 6.0897 per dollar. Asmussen’s View The euro advanced versus most major peers after ECB Executive Board member Joerg Asmussen said policy makers haven’t exhausted their options to counter low inflation, according to an interview broadcast on Austria’s ORF radio. Fed Chiefs The greenback fell a second day against most major currencies as Evans echoed comments by New York Fed President William C. Dudley yesterday, who said he’s more hopeful about the U.S. economy while indicating no change in the central bank’s bond-buying program. Retail Sales The greenback weakened as a gauge of global volatility fell for a fifth day to its lowest level this month. JPMorgan Chase & Co.’s Global FX Volatility Index decreased to as low as 7.75 percent, its weakest on an intraday basis since October 31. Options Trading Trading in over-the-counter foreign-exchange options totaled $61 billion, from $55 billion yesterday, according to data reported by U.S. banks to the Depository Trust Clearing Corp. and tracked by Bloomberg. Volume in options on the dollar-Chinese yuan exchange rate amounted to $18 billion, the largest share of trades at 30 percent. Options on the dollar-yen rate totaled $12 billion, or 20 percent. Dollar-yuan options trading was 381 percent more than the average for the past five Tuesdays at a similar time in the day, according to Bloomberg analysis. Dollar-yen options trading was 36 percent above average.
