Dollar holds gains against yen

AFP, TOKYO: The dollar held gains against the yen yesterday after risk appetite among Asian investors jumped on the back of rising expectations of a rise in US borrowing costs.
Sentiment in regional markets turned sharply positive after stocks in Europe and on Wall Street rallied on Tuesday on much better-than-expected data for US new-home sales, boosting the case for another US interest rate hike.
Official figures showing a surge in US new home sales in April to the highest level in more than eight years sparked a rally in the greenback, analysts said.
While that data is known for high volatility, the blockbuster jump prompted analysts to see a strengthening in the housing market, a key sector for growth in the US economy.
The figures reaffirmed a growing perception that the world’s top economy can cope with a gradual rise in US interest rates which could possibly come as early as next month, analysts said.

Dollar holds gains against yen

AFP, TOKYO: The dollar held gains against the yen yesterday after risk appetite among Asian investors jumped on the back of rising expectations of a rise in US borrowing costs. Sentiment in regional markets turned sharply positive after stocks in Europe and on Wall Street rallied on Tuesday on much better-than-expected data for US new-home sales, boosting the case for another US interest rate hike. Official figures showing a surge in US new home sales in April to the highest level in more than eight years sparked a rally in the greenback, analysts said. While that data is known for high volatility, the blockbuster jump prompted analysts to see a strengthening in the housing market, a key sector for growth in the US economy. The figures reaffirmed a growing perception that the worlds top economy can cope with a gradual rise in US interest rates which could possibly come as early as next month, analysts said.