The dollar was near a one-month high against the yen amid speculation signs of improvement in the U.S. economy will compel the Federal Reserve to taper stimulus this month while the Bank of Japan maintains policy.
Demand for the greenback was buoyed before private U.S. reports projected to show employment increased and the service industry expanded, adding to the case for the Fed to reduce debt purchases at a policy meeting on Sept. 17-18. The yen held a three-day decline against the euro as economists forecast the BOJ will decide to leave unchanged its unprecedented bond buying at the end of a two-day policy meeting today.
“The outlook for the U.S. economy and monetary policy will have a big impact over the dollar in the medium to long term,” said Yuki Sakasai, a foreign-exchange strategist in New York at Barclays Plc. “Our view remains that the Fed will decide to taper easing in two weeks.”
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.