Dollar/Yen Rises Steadily Backed by Strong Data

The US Dollar reached its highest level in about four weeks, fueled by rising expectations that the Federal Reserve will not cut interest rates soon, amid ongoing improvements in economic conditions.

Weekly unemployment claims dropped more than expected to a three-month low, while June retail sales rose above forecasts. The Philadelphia Fed’s July business outlook survey also hit its highest level in five months.

These data points drove the US Dollar to sustain its gains since the opening of Wall Street trading.

The Japanese Yen has been declining against the US Dollar since the start of the new week, influenced by political uncertainty ahead of the Japanese Senate elections on July 20.

Election promises from the ruling Liberal Democratic Party—offering cash distributions to voters, additional tax exemptions, and tax cuts—have raised concerns about the potential deterioration of Japan’s fiscal situation.