USD/JPY Hits 110 for First Time Since 2008

The dollar rose above 110 yen for the first time since 2008 before a private report that may show companies in the U.S. added more than 200,000 jobs for a sixth month, adding pressure on the Federal Reserve to tighten policy.

The greenback also strengthened before official payrolls data due Oct. 3. Australia’s dollar slid to an eight-month low after retail sales grew less than economists forecast. South Korea’s won dropped amid speculation the nation’s authorities will take steps to weaken the currency. The euro fell toward its lowest in two years before the European Central Bank meets tomorrow amid concern about slowing inflation in the region.

The U.S. is the only major economy which is on a stable path towards monetary policy normalization, said Daisaku Ueno, the Tokyo-based chief currency strategist at Mitsubishi UFJ Morgan Stanley Securities Co. “There is nothing else other than the dollar that people can buy.”

Bloomberg

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