Yen dip masked by its resilience versus US dollar

Don't be fooled by the yen's recent resilience against the dollar - it's dropping against the rest of its major peers at the fastest pace in six months.

Japan's currency slumped 3.2 percent over the past four weeks against a basket of nine developed-economy counterparts even as it traded in a range of just two yen around 120 per dollar. It dropped the most against the pound, which was supported by the UK election result, and Norway's krone, which is rising in line with oil.

The yen's weakness over the past two years came as the Bank of Japan pursued policies including unprecedented bond purchases, seeking to revive an economy that spent more than a decade battling deflation and a strong currency. While the currency has stalled versus the dollar as traders pushed back their outlook for a US interest-rate increase, most analysts predict the yen will head lower against the greenback, too, once the stasis breaks as BOJ stimulus sends cash overseas.