USD/JPY Surges Above 115 on Economic Outlook

The dollar rose to its strongest level in seven years against the yen, boosted by signs of strength in the U.S. economy as the Federal Reserve considers when to raised interest rates for the first time since 2006.

Japan’s currency fell versus most of its 31 major peers after Bank of Japan Governor Haruhiko Kuroda said he saw no limit to the steps to defeat deflation. The Bloomberg Dollar Spot Index closed at its highest since April 2009 as a private report showed employers added more jobs than forecast last month. Sen. Mitch McConnell, in line to become majority leader after Republicans took control in midterm elections, said “gridlock in Washington can be ended.” Russia’s ruble slumped to a record.

“Progress in the labor market has been evident for some months now and it just continues to build,” Richard Franulovich, the chief currency strategist for the northern hemisphere at Westpac Banking Corp. in New York, said by phone. “It reinforces the dollar-positive backdrop.”

Bloomberg

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.