The Dollar Hits Its Highest Level Against The Yen in Nearly 3 Years

The dollar rose to its highest level in nearly three years against the yen on Monday as investors remained confident that the Federal Reserve would announce a reduction in its massive bond purchases next month.

Friday’s jobs data pushed up US bond yields and subsequently lowered the yen, which is particularly sensitive to yield variances, to 112.84 against the dollar in early trade in London on Monday, a level last reached in December 2018.

The dollar index fell to 94.137, but not far from its one-year high of 94.504 touched earlier this month.

The performance of the Australian dollar improved slightly and approached its highest level in a month, supported by the rise in commodity prices and the partial easing of lockdown measures in Sydney, the largest Australian city.

The British pound settled at $1.3634, extending its recovery from a nine-month low reached late last month, on growing expectations that the Bank of England may raise interest rates to curb rising inflation.

The Canadian dollar traded at 1.2450 per US dollar after hitting a two-month high of 1.24465 CAD thanks to surprisingly strong Canadian jobs data and higher oil prices.

The euro was weak at $1.1575, slightly above Wednesday’s low of $1.1529, the weakest since July last year.