The dollar hovered at a seven-year high against the Japanese yen early on Wednesday, following a broad rally overnight, thanks in part to a big rise in U.S. yields as the economic outlook there outshone most of its rich world peers.
The dollar traded at 119.22 yen, after reaching 119.29, a high not seen since August 2007. It has been steadily climbing toward the 2007 peak of 124.14 since September 2012.
The greenback also gained on the euro, which dipped to a 1-1/2 week low of $1.2377, from Tuesday’s high of $1.2476. All of which lifted the dollar index to its highest in over four years at 88.668.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.