Currencies from the Australian dollar to the yen and Malaysia’s ringgit climbed against the greenback, trimming annual declines before the New Year holiday. Silver and gold rebounded after slumping yesterday while oil in New York held below $100 a barrel.

Australia’s currency, known as the Aussie, added 0.2 percent versus the dollar by 11:33 a.m. in Sydney, while the ringgit gained 0.1 percent. The yen climbed 0.2 percent, leaving its 2013 slide at 17 percent. Silver and gold gained after losing at least 1.4 percent yesterday. The metals are set for their worst years since 1981. Oil was steady at $99.36. Standard & Poor’s 500 Index futures and Asian stocks were little changed after the Dow Jones Industrial Average (INDU) closed at a record.

The dollar is poised for its best annual surge versus the yen since 1979 and has gained against 10 of 16 major currencies tracked by Bloomberg this year as the Federal Reserve said it would pare back record bond purchases and the Bank of Japan pledged to maintain stimulus. While markets from Japan to South Korea and Indonesiaare shut today, Australia is scheduled to post private sector credit data and in the U.S., reports on house prices and consumer confidence are due.

“Dollar-yen has probably been one of the most popular leverage trades throughout the year,” Robert Rennie, the Sydney-based global head of currency and commodity strategy at Westpac Banking Corp., said by phone. “The BOJ’s intention to almost double the size of its balance sheet and more than double its monetary base target over a two-year period was heavily sponsored by the hedge fund community.”

Yen Retreat ….continued