Article by ForexTime
The dollar maintained strength and hit a fresh six-year high against the yen and dropped near a 2-year peak versus the euro thanks growing divergences between the monetary policies of the Federal Reserve, European Central Bank and Bank of Japan.
Investors expect the dollar to firm further against the yen if upcoming U.S. data fan prospects of an early rate hike by the Fed.
Dollar bulls all but shrugged off a decline in U.S. consumer confidence in September and a home price report that fell short of expectations as many still believe the U.S. economy is on a recovery path that will allow the Fed to raise interest rates well before the European Central Bank and Bank of Japan.
“Friday’s non-farm payrolls will be key, as it could raise rate hike expectations another notch,” said Shinichiro Kadota, chief Japan FX strategist at Barclays Bank in Tokyo.
After hitting a peak of 110.09 yen, the highest since August 2008, the USDJPY last traded at 109.83 in early European session trading, up 0.3 percent from late Tuesday.
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Article by ForexTime
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