The dollar rose versus the yen on Tuesday, helped by renewed talk that the U.S. Federal Reserve may announce a further reduction of its bond-buying stimulus next week, while the New Zealand dollar surged after a surprise pick-up in inflation.
The U.S. dollar advanced 0.5 percent to 104.65 yen, bringing it closer to possible resistance near 104.92 yen, an intraday high hit on January 16.
Traders said a story in the Wall Street Journal’s online edition saying the Fed could announce a further reduction to its monthly bond purchases at the end of its January 28-29 policy meeting, to $65 billion from the current $75 billion, gave the dollar a boost.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.