American focus: the yen rose, Canada’s and New Zealand’s dollar fell

The yen rose to a post-World War II high against the dollar and rallied versus most of its other major counterparts as European sovereign debt concern before tomorrow’s summits spurred demand for a refuge. Bank of Japan policy makers will discuss steps to ease the impact of the strong yen on the nation’s economy at a two-day meeting beginning tomorrow. Measures may include expanding a 50 trillion yen ($660 billion) asset purchase program by 5 trillion yen and purchase bonds with maturities longer than two years, the newspaper reported without citing anyone.

 Canada’s dollar fell 1.2 percent to C$1.0154 versus the U.S. currency after the Bank of Canada said the nation’s economy will grow more slowly than projected and removed a reference to withdrawing stimulus. The target lending rate was held at 1 percent, where it has been since September 2010.

New Zealand’s dollar declined 1.2 percent to 79.74 U.S. cents as the South Pacific nation’s consumer prices increased 0.4 percent in the third quarter after rising 1 percent in the prior three months. The data fueled speculation the Reserve Bank of New Zealand will signal a willingness to keep its benchmark interest rate at a record low.

US dollar fell after consumer confidence unexpectedly slumped in October to the lowest level since March 2009, when the U.S. economy was in a recession, as Americans’ outlooks for employment and incomes soured. Separate data showed that home prices in 20 U.S. cities dropped more than forecast in August, highlighting one of the obstacles facing the economic recovery in its third year.