The U.S. dollar was close to reach its two-month high versus the Japanese yen. As of now, investors are keeping an eye on a likely interest rate hike by the Federal Reserve this coming June.
On Tuesday’s opening bell, the dollar was 0.88 percent higher versus the yen’s 114.25. In addition to yen’s defeat, the euro also surpassed the Japanese currency by 0.39 percent against yen’s 124.16. The euro on the other hand marginally rose by 0.4 percent against the Swiss franc at 1.0952 francs. The dollar was also higher by 0.8 percent against franc’s 1.0068.
The Swiss currency had been declining against the euro since October, and for the last two weeks it was lower by 2 percent.
The rising yields in the United States also contributed to the gains of the greenback as the country’s benchmark 10-year Treasury yields notches its five-week highs, along with the price of rate futures near to a probable interest rate hike by 90 percent this June. U.S. two-year note yields were also on the positive territory last Tuesday.
The U.S. dollar index, which measures the value of the greenback relative to its major opposing currencies, is on track to its three-week highs. This is driven by the yield’s growth.
Commonwealth Foreign Exchange’s chief market analyst Omer Esiner says the point of view of the market is still firm and the Federal Reserve is currently anticipated to lift interest rates in the country next month, and will repeat on September; given that the economy in the U.S. perceived a stagnant market in the first three months of 2017.