USD/JPY to Seven Year High above 119.30

The dollar strengthened to a seven-year high against the yen before U.S. data this week that economists say will back the case for higher interest rates as Japan and Europe ease policy.

The greenback was 0.2 percent from its strongest in two years against the euro before the European Central Bank meets tomorrow. Australia’s currency slid to a four-year low after a report showed economic growth was less than forecast. New Zealand’s dollar weakened following a drop in milk prices at an auction. Federal Reserve Vice Chairman Stanley Fischer said yesterday low oil prices are a boon to the U.S. economy.

“The market has been paying attention to comments by Fed officials that lower energy prices are a plus for the U.S. recovery,” said Yasuhiro Kaizaki, vice president for global markets at Sumitomo Mitsui Trust Bank in New York. “That optimism over the economic outlook is fueling dollar buying.”

Bloomberg

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