The dollar dipped back from a five-month high of 108.54 yen, but traders suggested it could test the 110 yen mark as soon as this week, with eyes on Fed chief Janet Yellen’s congressional testimony later this week.
The central bank is widely expected to hike borrowing costs next month but her remarks Thursday will be pored over for clues about its plans for next year.
“By all accounts, there appears no stopping the US dollar’s recent ascent based on the current interest rate trajectory,” Stephen Innes, senior trader at OANDA, said in a note.
“With the Trump Factor fully subscribed, will Dr Yellen spoil the (dollar’s) recent coronation as King of the Hill, or be the catalyst for another leg higher when she delivers her economic outlook before the Joint Economic Committee of Congress on Thursday?”
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