The dollar touched a three-week high against the yen after the Federal Reserve confirmed it will end its bond-purchase program amid improved conditions in the labor market.
The greenback held its biggest gain in almost four weeks against major peers as traders pushed up odds for an interest-rate increase next year even as the Federal Open Market Committee maintained its pledge to keep borrowing costs low for a “considerable time.” The New Zealand dollar fell after the Reserve Bank signaled it will keep rates on hold for an extended period.
“The Fed was more hawkish than investors had expected on both jobs and inflation,” said Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corp. in New York. “The reaction in currency markets was to buy the dollar.”
The dollar traded at 108.95 yen at 9:15 a.m. in Tokyo, after touching 109.01 yen, the highest since Oct. 7. It was little changed at $1.2624 per euro after climbing 0.8 percent yesterday. Japan’s currency was at 137.53 per euro from 137.56.
No comments:
Post a Comment