Dollar reaches 15-month high vs yen as U.S. labor report nears
The dollar rose to a 15-month high versus the yen on Thursday before the Federal Reserve decides whether to reduce stimulus, a decision that will be highly dependent on the U.S. labor data turnout.
The greenback hovered near multi-month peaks against other major counterparts.
For the first time since March 26, 2020, the U.S. currency climbed as high as 111.165 yen, higher than Wednesday’s 111.095.
The dollar index, which tracks the greenback against a basket of six other currencies, placed just below a 2 1/2-month top of 92.451, edging up on the day to 92.415.
The index posted the biggest monthly rise since November 2016 in June. This was influenced by a surprise hawkish shift in the middle of that month when policymakers motioned two interest rate hikes by the end of 2023.
Investors will confirm this outlook when the U.S. non-farm payrolls report comes out on Friday. Economists expect an increase of 700,000 in jobs higher than the 559,000 gain expectation in May.