USD/JPY near 102 as Risk Appetite Increases

The dollar rose the most in two weeks against the yen as risk appetite swelled amid a higher-than-forecast gain in U.S. industrial production and as companies’ earnings topped estimates, damping demand for safety.

Mexico’s peso rallied on the production report from the U.S., the nation’s biggest trade partner. Japan’s currency sank as central-bank Governor Haruhiko Kuroda told parliament it wasn’t appropriate to discuss an exit from stimulus now. Stocks climbed. The dollar erased a gain versus the euro as Federal Reserve Chair Janet Yellen said U.S. policy makers have a “continuing commitment” to support the economic recovery.

“It’s a pretty risk-on day,” Chris Gaffney, senior market strategist at EverBank Wealth Management in St. Louis, said in a telephone interview. “The economy is definitely heating up along with the weather, but nothing too hot that’s going to force the Fed’s hand.”

Bloomberg

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