USD/JPY near One Week High around 102.40

The dollar gained to the highest level in more than a week against the yen as investors bet the Federal Reserve will press on with a reduction in stimulus before Chairman Janet Yellen speaks to U.S. lawmakers tomorrow.

The Bloomberg Dollar Spot Index halted a five-day decline, even after a Feb. 7 report indicated employment growth last month in the world’s biggest economy was less than analysts expected. The yen weakened against most major peers after Japan’s finance ministry said the nation’s current-account deficit widened to record in December. The euro snapped an advance from last week ahead of data today that may show industrial production in France declined.

“Yellen’s testimony will reinforce that they’re comfortable with this steady tapering course,” said Stan Shamu, a Melbourne-based market strategist at IG Ltd. “That will probably see the U.S. dollar gain some ground against the majors.”

Bloomberg

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