Yen Slides to Seven-Year Low on Election Outlook

Foreign-exchange volatility reached its highest in more than nine months as forecasts for economic growth and less-stimulative monetary policy in the U.S. diverge from overseas prospects.

The dollar slipped from a five-year high even as a report showed faster-than-forecast U.S. inflation. The yen reached a seven-year low versus the greenback as Japanese lawmakers prepare for early elections in which Prime Minister Shinzo Abe will seek a fresh mandate for economic stimulus. UBS AG said the Swiss National Bank “might have started” buying euros to defend its currency cap. South Africa’s rand and Russia’s ruble rallied.