2013.06.2105:50:16UTC+00Dollar set for weekly advance before data on housing, goods orders

The dollar marching forward for a weekly gain versus all of its 16 major counterparts before U.S. data next week on home prices and durable-goods orders that may add to the case for the Federal Reserve to slow its bond purchases.

The yen cutted a four-day drop versus the greenback as Asian stocks extended a global rout before a speech today by Bank of Japan Governor Haruhiko Kuroda. Deutsche Bank AG’s G10 FX Carry Basket index pulled back to the worst point since September as borrowing costs rose in the U.S.

Yields Surge

“If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year,” Fed Chairman Ben S. Bernanke said in a press conference in Washington after the central bank meeting.

Rising Yields

Yields on benchmark Treasuries touched 2.47 percent yesterday, the highest since August 2011. The MSCI Asia Pacific Index of shares declined 1.3 percent today, following a 2.5 percent slide in the Standard & Poor’s 500 Index yesterday.

Borrowing Costs

Japan’s 10-year government bond yields have increased 32 1/2 basis points to 0.885 percent since the end of March, poised for the biggest quarterly gain since the period ended June 2008, even as the BOJ doubled monthly bond purchases to lower borrowing costs. The benchmark lending rate for large corporations, known as the primate rate, has advanced to 1.3 percent, a level unseen since July, while 35-year mortgage rates rose to a 13-month high of 2.03 percent.

Deutsche Bank’s G10 FX Carry Basket index has slid about 10 percent from a high in April. The gauge gained 6.8 percent in 2012 as weakening economic data in the U.S., Japan and the euro region fanned expectations central banks would keep rates low and inject money to boost growth.

The JPMorgan Global FX Volatility Index touched 11.51 percent, the highest level since June 7, 2012. The average in the past year is 8.65 percent.