Dollar holds firm vs Yen

SINGAPORE — The dollar held firm near a seven-week high versus the yen on Monday, supported by recent rises in U.S. yields, while sterling took a breather after surging last week on growing expectations that the Bank of England could raise interest rates soon.

The dollar rose 0.3 percent to 111.19 yen, trading within sight of Friday’s peak at 111.33 yen, the dollar’s highest level since late July.

The dollar gained nearly 2.8 percent against the yen last week, buoyed by a rise in U.S. Treasury yields that bolstered the greenback’s appeal, and as data showing a pick up in U.S. consumer prices helped rekindle expectations that the Federal Reserve could raise interest rates again in December.

“We’ve certainly seen some adjustment on the December rate hike probabilities. I think that may carry the day at least until we get into the FOMC,” said Stephen Innes, head of trading in Asia-Pacific for Oanda, referring to this week’s Fed policy meeting.

The yen’s recent drop against other currencies, such as sterling, has had some spillover impact and lent added support to the dollar versus the yen, traders say.

 

 

The New York Times via Reuters

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)