Monday 29 August 2016

The USD/JPY reached 3 weeks maximum against the background of official comments about the Fed rate

The dollar rose to a peak of three weeks against the yen on Monday, as comments by the US Federal Reserve strengthened expectations of interest rate rise in the near term.
The yield on US government bonds rose to the highest levels since June, and interest rate futures indicated that the probability of a rate hike in September exceeded 30 percent, compared with 18 percent before the speech of Fed Chairman Janet Yellen and her deputy Stanley Fischer, showed FedWatch data from CME Group.
The dollar on Monday rose by 0.5 percent against the yen to 102.39 yen, the highest level since 9 August. By 12.00 GMT the dollar strengthened by 0.42 percent to 102.25 yen.
The dollar index against a basket of major currencies grew by 0.19 percent to 95.752. Euro fell by 0.24 percent to $1.1168.
Speaking at the three-day symposium of central bankers in Wyoming, Yellen said, that the probability of a Fed rate to be increased in recent months due to improved labor market indicators and expectations of moderate economic growth has rose.
Yellen did not specify when the US Central Bank may raise rates again, but her deputy, Stanley Fischer, said, that the Fed chairman speach on Friday met the expectations of the likely increase in interest rates this year.


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