Central bank divergence raises the dollar against the yen for the first time in almost three years
File Photo: Taken on May 26, 2020, you can see US dollar bills in this figure. REUTERS / DadoRuvic / Illustration / File Photo
October 11, 2021
By Ritvik Carvalho
London (Reuters) – Investors are confident that the Federal Reserve Board will announce a major reduction in bond purchases next month, despite weak U.S. salaries, on Monday. The dollar has soared to its highest level in almost three years against the Japanese yen.
Employment data on Friday boosted US Treasury yields. The yen, which is known to be particularly sensitive to interest rate differentials, reached 113 yen to the dollar for the first time since December 2018 in the morning transaction in London.
The Japanese currency was also hit by a slight tilt towards more risky currencies as both the Sterling and the Australian dollar rose slightly on the greenback, although the dollar index rose slightly to 94.228, Not far from the yearly high of 94.504 mentioned…
