Greenback gets strength from Japan buying
During Monday’s Asian trade, the greenback acted stronger against the key Japanese currency, backed up by buying from Japanese corporate players.
The US dollar traded ¥113.54, having reached its intraday high of ¥113.69, which is its highest value since mid-March.
The evergreen buck surged amid quite poor trading volume, because Japanese institutional investors and importers purchased the currency ahead of their book closing, scheduled for March 31.
Furthermore, the greenback was also powered by recent remarks from the Fed’s policy setters, which sparked expectations for an early interest rate hike.
The Japanese yen was sold against its key rivals due to improved market sentiment. Recent reports state that Shinzo Abe, Japan’s Prime Minister is moving persistently towards delaying an undesired sales-tax hike planned for April 2017.
Market participants still remain cautious enough regarding the sustainability of the greenbacks’ strength against the major Japanese currency. It’s premature to state that the US dollar could hit¥114 or even ¥115, until most market players get back from the Easter holiday.