By Dow Jones Business News,
August 21, 2014, 01:47:00 AM EDT
By Alexander Martin
The dollar extended its gains against the yen during Asian trading Thursday after the minutes of the latest meeting of
the Federal Open Market Committee sounded a more hawkish tone.
The greenback hit a new four-month high against the yen during morning trading, climbing to Y103.96. As of 0450 GMT,
it was at Y103.85 from Y103.76 late Wednesday in New York.
Analysts said the pair was on its way toward the Y104 level, with key resistance at Y104.13, the April 4 high.
The minutes showed that FOMC members saw progress in the labor market and inflation picking up such that conditions
were returning to the normal levels of before the financial crisis that peaked in 2008.
Eyes will now be on Federal Reserve Chairwoman Janet Yellen's speech Friday at the conference in Jackson Hole, Wyo.
IG Securities market analyst Junichi Ishikawa said the pair could continue to climb if Ms. Yellen maintains a hawkish
tone. "Until then, I think we will be seeing the pair moving in a rather narrow range."
The market is now seeking further indications that the Fed is adjusting its views of the U.S. economy, and of its
plans to raise interest rates. Higher rates would benefit the dollar, as investors would get greater returns from
Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi UFJ, said the Nikkei Stock Average's strong
performance also supported the pair.
"Improved risk sentiment is lifting the dollar broadly," he said. As the dollar went up, the euro fell to $1.3242, its
lowest level in 11 months. At 0450 GMT it was at $1.3246 from $1.3260 late in New York.
The dollar index, which compares the dollar against a basket of currencies, was up 0.14% at 74.61.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 103.83-86 103.75-77 +0.08 103.96 103.68 -1.39
EUR/USD Euro 1.3244-46 1.3258-61 -0.11 1.3260 1.3243 -3.63
GBP/USD U.K. 1.6568-70 1.6594-605 -0.19 1.6600 1.6566 +0.07
USD/CHF Switzerland 0.9141-44 0.9132-36 +0.10 0.9145 0.9134 +2.38
USD/CAD Canada 1.0982-86 1.0965-72 +0.14 1.0984 1.0966 +3.41
AUD/USD Australia 0.9253-56 0.9287-90 -0.37 0.9291 0.9240 +3.81
NZD/USD New Zealand 0.8358-62 0.8372-76 -0.17 0.8376 0.8350 +1.69
EUR/JPY Japan 137.55-58 137.55-60 -0.01 137.73 137.48 -4.96
Source: ICAP PLC
Write to Alexander Martin at email@example.com
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.