Dollar gets a lift from upbeat Fed report

AFP, TOKYO: The dollar rose against the yen yesterday, extending its recovery from losses early in the week, as confidence in global markets returned owing to solid US economic data.
In Tokyo, the dollar bought 120.40 yen, up from 120.32 yen in New York.
The euro was nearly flat at $1.1224 and 135.15 yen against $112.25 and 135.06 yen.
The greenback strengthened against its peers amid signs the US economy will be able to shrug off slowing growth in China, and with volatile Chinese markets closed yesterday and Friday as the country marked Tokyo’s World War II defeat.
“Demand for the dollar remains strong, but investors are also wary of the Chinese risks that may hamper a Federal Reserve rate hike,” Keisuke Hino, a foreign-exchange trader at Mizuho Bank, told Bloomberg News.
But National Australia Bank said in a commentary: “China’s economy is not in a terrible shape, and ... the Fed will not be deterred from raising the federal funds rate by more than envisaged over the next year or so.”
Investors are weighing the likelihood of a Fed increase in zero-level interest rates this month.
The US central bank will determine the timing of its first rate hike since 2006 after looking at economic data.

Dollar gets a lift from upbeat Fed report

AFP, TOKYO: The dollar rose against the yen yesterday, extending its recovery from losses early in the week, as confidence in global markets returned owing to solid US economic data. In Tokyo, the dollar bought 120.40 yen, up from 120.32 yen in New York. The euro was nearly flat at $1.1224 and 135.15 yen against $112.25 and 135.06 yen. The greenback strengthened against its peers amid signs the US economy will be able to shrug off slowing growth in China, and with volatile Chinese markets closed yesterday and Friday as the country marked Tokyos World War II defeat. Demand for the dollar remains strong, but investors are also wary of the Chinese risks that may hamper a Federal Reserve rate hike, Keisuke Hino, a foreign-exchange trader at Mizuho Bank, told Bloomberg News. But National Australia Bank said in a commentary: Chinas economy is not in a terrible shape, and ... the Fed will not be deterred from raising the federal funds rate by more than envisaged over the next year or so. Investors are weighing the likelihood of a Fed increase in zero-level interest rates this month. The US central bank will determine the timing of its first rate hike since 2006 after looking at economic data.