The U.S. dollar touched the highest in more than six months versus the yen, as traders bet on diverging monetary policy between the U.S. and Japanese central banks.
The greenback headed for a seventh weekly gain against the yen as the yield spread between Treasuries and Japanese government bonds approached the widest since April 2011. The Federal Reserve and Bank of Japan both meet next week to set policy. The euro reached a five-year high against the yen, heading for a fifth weekly advance, before European Central Bank Vice President Vitor Constancio and executive board members Benoit Coeure and Peter Praet speak today.
“Dollar-yen is being driven by the monetary policies of the Fed and BOJ,” said Yujiro Goto, a senior currency strategist at Nomura International Plc in London. “The dollar is being bid as the Treasury yield spread over JGBs widens.”
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