Dollar Supported Before Fed Meeting as Equity Rebound Sinks Yen

  • Futures show 76% likelihood that Fed will act on Dec. 16
  • Yen pares weekly gain as Japan stocks rally after 3-day drop
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The dollar rose for a second day against the yen ahead of next week’s Federal Reserve meeting, when investors anticipate policy makers will raise interest rates for the first time in almost a decade.

The greenback advanced against most of its developed-market peers Friday, a day after posting its first gain in three sessions versus the yen and euro. Japan’s currency dropped the most in a week, trimming its best weekly performance for three months, as the nation’s stocks rallied from a three-day slide. Australia’s dollar extended its biggest weekly decline in a month after key export iron ore experienced its longest slump since 2008.