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Forex - Dollar hits 3-1/2 week highs vs. yen

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Investing.com - The dollar rose to three-and-a-half week highs against the yen on Monday, boosted by expectations that the Federal Reserve will soon start to unwind its asset purchase program.

USD/JPY hit 99.57 during late Asian trade, the pair's highest since June 5; the pair subsequently consolidated at 99.49, rising 0.34%.

The pair was likely to find support at 98.32, Friday's low and resistance at 100.45, the high of June 5.

Demand for the dollar continued to be underpinned by expectations that the Fed will soon start tapering its USD85 billion-a-month bond buying program. Investors were awaiting Friday's U.S. nonfarm payrolls data, with good data set to bolster the dollar further.

Earlier Monday, the Bank of Japan's quarterly business sentiment index showed a strong jump in optimism among large manufacturers, adding to the view that the economy is picking up.

Meanwhile, concerns over a slowdown in China lingered following the release of mixed manufacturing data.

China's official manufacturing purchasing managers' index came in at 50.1 in June, above expectations for 50.0, following a reading of 50.8 in May.

Separately, China's HSBC manufacturing PMI fell to a nine-month low of 48.2 in June, down from a preliminary reading of 48.3 and further below the 50 level that separates contraction from expansion.

The yen was lower against the euro, with EUR/JPY rising 0.45% to 129.57.

The euro zone was to release official data on the unemployment rate and consumer price inflation later Monday. In the U.S., the Institute of Supply Management was to produce a report on manufacturing activity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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