USD/JPY Surges Above 115 on Economic Outlook

The dollar rose to its strongest level in seven years against the yen, boosted by signs of strength in the U.S. economy as the Federal Reserve considers when to raised interest rates for the first time since 2006.

Japan’s currency fell versus most of its 31 major peers after Bank of Japan Governor Haruhiko Kuroda said he saw no limit to the steps to defeat deflation. The Bloomberg Dollar Spot Index closed at its highest since April 2009 as a private report showed employers added more jobs than forecast last month. Sen. Mitch McConnell, in line to become majority leader after Republicans took control in midterm elections, said “gridlock in Washington can be ended.” Russia’s ruble slumped to a record.

“Progress in the labor market has been evident for some months now and it just continues to build,” Richard Franulovich, the chief currency strategist for the northern hemisphere at Westpac Banking Corp. in New York, said by phone. “It reinforces the dollar-positive backdrop.”


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