Currency Volatility at Seven-Year Low

Central banks' monetary policies and forward guidance are restraining price swings among major currencies.

Foreign exchange volatility fell to the lowest level in almost seven years as central-bank polices of monetary stimulus and forward guidance restrain price swings.

The yen strengthened earlier as a government report showed inflation accelerated to the fastest in more than two decades in April, reducing the prospect of additional stimulus by the Bank of Japan. The krona declined versus most of its 16 major peers after Sweden’s economy unexpectedly contracted and amid speculation the Riksbank will cut rates. The Canadian dollar fell as first-quarter economic growth slowed.

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