Dollar Goes Beyond ¥110 Reaching Its Highest In the Last Few Months
After the surprise election of Donald Trump, the US dollar continues to increase in strength. The positive data from the US combined with the expectation of interest rates in the US has resulted in the strengthening of the dollar. As a result, US dollar surpassed 110 JPY, reaching its peak in the past five months. The greenback expectation is one of the important reasons for this rise.
Janey Yellen, the Federal Reserve chief said on Thursday that the increase in US interest rates could happen sooner. This is an indication of the improvement in the US economy. The US inflation is slowly getting to a steady pace and housing is increasing. The weekly jobless reports have been reported to be the lowest since 1973.
The WSJ dollar index, which is a measure of the US dollar against major currencies increased by 0.28% to reach 91.46. The dollar also proved to be strong against the Australian and Singaporean dollar. The finance minister of Japan said that the weakening of Japan’s currency is an indication of the stability of the economy. He happily welcomed the reversal in the strength of the currency. The finance minister said that the economy is finally becoming stable after a long time.
The Bank of Japan is keen on setting the limits of the Yen and US rates continue to climb. This can result in the growth of the gap between the US dollar and Japanese Yen. This can, in turn, result in higher yields for the investors.
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