Greenback hits another peak against yen on US rate-hike hopes
On Monday, the evergreen buck ascended against the Japanese yen on hopes for an American rate hike and fiscal stimulus by President-elect Donald Trump.
The currency pair USD/JPY gained 0.04%, reaching ¥111.08, compared with Friday’s outcome of ¥110.90 in New York. In the afternoon Tokyo trading the greenback leapt as high as 111.18 - the highest outcome since May 31.
Market participants locked in expectations of an American rate lift and bought the greenback and sold the yen based on comments by New York Fed President William Dudley on Friday. He told that inflation expectations turned to be well-anchored.
Even though market participants are concerned with a steep rate lift, a great number of traders almost fully expect rate hike action. Therefore, it’s quite natural that exchange as well as interest rates are being affected.
Meanwhile, the British pound lost -0.0162% against the greenback, trading at $1.2338, compared with the previous result of $1.2347.