Volatility among major currencies fell to the lowest since 2007as global central-bank balance sheets continue growing, drivingmore liquidity into financial markets, even as the economyworldwide recovers.

Australia's dollar rose the most in almost two weeks against itsU.S. counterpart before a report economists forecast will showinflation accelerated. The yuan touched a 14-month low as China'slargest manager of distressed debt said the country's soured-loanratio increased “significantly.” The dollar fell for the first timein eight days against a basket of peers before the FederalReserve's policy meeting next week.

“The water is becalmed, and here on there's not much that'sgoing to change it,” Marc Chandler, the global head of currencystrategy in New York at Brown Brothers Harriman & Co., said inan interview on Bloomberg Radio's “Surveillance” with Tom Keene andMichael McKee. “The Fed is buying more long-term assets than whenthey first announced QE3 in September 2012. We also know theEuropean Central Bank and Bank of Japan may have to do more, sowe're not at the peak of the balance sheets.”

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