Dollar nears one-month high as yen approaches 160 level
The US dollar rose against major currencies in Asian trading on Thursday amid expectations of further Federal Reserve interest rate hikes.
The US dollar reached levels near a one-month high against several major currencies during early Asian trading on Thursday, according to the Economic Times. The dollar index, which tracks the greenback against a basket of currencies, rose 0.63 per cent to 102.85, marking its highest point since October 14.
Traders increased bets on further tightening by the Federal Reserve (Fed) following stronger than expected October inflation data. US central bank officials have expressed concerns regarding persistent inflation, leaving the possibility of a 50-basis-point increase open. Some brokerages, including Goldman Sachs, now anticipate a rate hike in December and another early next year.
The Japanese yen moved toward the 160-per-dollar mark, with the dollar softening 0.12 per cent to 159.58 against the yen. An analyst at MUFG Bank noted that if Bank of Japan (BOJ) board member Toichiro Asada signals a cautious approach to rate hikes during a scheduled speech, the policy divergence between Japan and the US could drive dollar buying.
Data from the BOJ released on Thursday showed Japanese wholesale prices increased 7.1 per cent in the year to October, up from 6.8 per cent in September. Meanwhile, the euro rose 0.09 per cent to $1.1099 against the dollar, while sterling traded at $1.328.
In the cryptocurrency market, bitcoin fell 0.59 per cent to $73,876.57 and ether declined 0.78 per cent to $2,052.27.