The dollar hit an eight-week high against the yen on Monday, supported by a rise in U. S. Treasury yields.
The dollar hit an eight-week high against the yen on Monday, supported by a rise in U. S. Treasury yields, as traders eyed a Federal Reserve meeting starting the next day for clues on whether interest rates could rise again by year-end.
The greenback recorded its best week against the Japanese currency since November last week, gaining 2.8 percent, as a rise in U. S. yields bolstered its appeal and as data showing a pick up in U. S. consumer prices helped rekindle expectations that the Fed could hike rates again in December.
It built on those gains on Monday as world stocks hit record highs, suggesting a high appetite across markets for riskier assets, rising half a percent on the day to 111.41 yen .
That was the dollar’s strongest since July 27.
The focus for this week is the Fed’s Sept. 19-20 policy meeting. The Fed is seen likely to announce a plan to start shrinking its balance sheet at the meeting, but is widely expected to keep interest rates unchanged – for now.
Markets are now pricing in a more than 50 percent chance of a Fed hike by the end of the year, up from only around a 40 percent chance less than a week ago, according to CME FedWatch, having brought forward their bets after a strong U.
