The U.S. dollar hit a five-year high against the yen on Friday amid talk that the Federal Reserve could start unwinding its monetary stimulus as soon as next week’s policy meeting.
The dollar rose as high as 103.92 yen, taking its gains over the past month to about 4.6 percent. It also rose to its highest level against the Australian dollar in more than three months at about 0.8910.
“The move in dollar/yen has certainly entered levels that are interesting,” said Emma Lawson, a senior currency strategist at National Australia Bank. “Most people have moved towards expectations for a December or January taper and the yen is standing out as the currency to short.”
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