USD/JPY at 103.30 as Fed’s Bullard Says Taper Odds Rise

The dollar gained versus the yen for a second day as Federal Reserve Bank of St. Louis President James Bullard said the odds of tapering bond purchases have risen along with gains in the labor market.

The greenback strengthened to almost the highest level since May versus Japan’s currency after Bullard, who votes on policy this year, commented on a report last week that showed the jobless rate dropped to a five-year low of 7 percent in November as employers added more workers than forecast. The pound snapped a four-day decline against the euro and Mexico’s peso rallied to the strongest in almost two months.

“We’re still riding the Friday numbers,” Fabian Eliasson, head of U.S. currency sales in New York at Mizuho Financial Group Inc., said in a phone interview. “We’re just getting clarity and listening to the Fed speakers.”


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