The yen hits its lowest level against the dollar in 24 years

The dollar rose broadly on Thursday, September 1st, especially against the yen, as investors geared up to get higher interest rates in the US, while not expecting Japanese rates to move.

The dollar hit a 24-year high of 139.69 against the yen in early Asian trade, up 0.5% from yesterday’s close of 0.42% higher at 139.55.

Expectations to raise the US interest rate by 75 basis points next time during the US Federal Reserve meeting this month come on the back of economic data, and the latest Fed money futures contracts indicate a 75% chance of a hike.

The dollar’s rally dragged other major currencies down in Asian trade, and the British pound fell by about 0.4% to a new 2 1/2 year low at $1.1570.

The pound lost 4.6% in August, its lowest level since October 2016.

The euro was down 0.4% at $1.0014, as severe euro zone inflation favored a rate hike in Europe.

Inflation in the euro zone rose to a record 9.1% in August, data showed on Wednesday, August 31, underpinning further large interest rate hikes by the European Central Bank.