European focus: the yen climbed to 2 -weeks high versus dollar. [E]

The yen rose the most in more than 2-weeks against the dollar after BOJ Governor Toshihiko Fukui said policy makers need to adjust interest rates from near zero percent ``without delay.''
The key rates are too low,-he declares. The yen also climbed as BOJ Minutes from the last meeting suggested its 2.6% advance this year impact negatively on Japanese companies.
Fukui's comments surprised markets, and traders are fully priced in a
chance BOJ will move key rates sooner rather than later,'' said Niels
Christensen, Societe Generale SA. We will possibly see further rate hike as early as next month, and this means a stronger yen."
We are entering a phase of tight monetary policy now. We need to implement policy gradually,'' Fukui said. He added that the timing of borrowing costs increase depends on economic data and the central bank is not going to crimp on any predetermined period.
The dollar may weaken against the euro on concern a government report today will show residential construction held close to a 17-month low in May. This can add rumors for economy slow down due to Fed higher
interest rates.
Housing starts reached an annual rate of 1.869 million from April's 1.849 million, the lowest since November 2004, Building permits probably may fell to 1.95 million pace, the lowest since November 2003, from 1.973 million.