The dollar rose to a three-week high against the yen after the Federal Reserve ended bond purchases because of an improved labor market.
The greenback gained versus 14 of its 16 major peers as traders pushed up odds for an interest-rate increase next year even as the Federal Open Market Committee maintained its pledge to keep borrowing costs low for a “considerable time.” New Zealand’s dollar held a decline after the Reserve Bank signaled it will keep rates unchanged for an extended period. Bank of Japan Governor Haruhiko Kuroda will appear in parliament today before a policy meeting tomorrow.
“Fed policy makers have dispelled any doubts that they will normalize policy,” said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. “The U.S. currency is back on its uptrend.”
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