The dollar rose to eight week peaks versus the yen in early Asian trading, as investors eyed the strength of the economy. The greenback was slightly higher on the day at 114.31 yen after earlier climbing as high as 114.37, its highest since March 15.
The Japanese yen previously gained after U.S. President Donald Trump suddenly dismissed FBI Director James Comey, fueling investors’ fear that the move would then lead to political turmoil and impede U.S. stimulus steps and tax reform.
Markets are implying nearly a 90 percent likelihood that the economy is robust enough for the Federal Reserve to hike interest rates in June.
Higher U.S. yields also bolstered the greenback. The benchmark U.S. 10-year yield retested five-week peaks overnight following an auction result which implied weak investor demand. It last stood at 2.389 percent in Asian trading.
The euro was stable from North American levels at $1.0865. The dollar index, which tracks the greenback against a basket of currencies, stood at 99.673.
The U.S. currency rose against the Canadian dollar after Moody’s downgraded the credit assessments, long-term ratings and counterparty risk assessments of six Canadian banks and their affiliates. It last stood C$1.3708, higher by 0.4 percent.
The material has been provided by InstaForex Company – www.instaforex.com
May 11, 2017 at 07:39AM
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