Dollar Extends Two-Week Gain Versus Yen on Policy Divergence Bet
- BOJ to ease this week, economists in Bloomberg survey predict
- Speculators add to bets on dollar after being bearish in May
Will Fed Adopt Hawkish Tone and BOJ Ease?
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The dollar extended a two-week advance against the yen amid speculation that, this week, the Federal Reserve will signal it’s on course to raise interest rates in 2016 and that the Bank of Japan will expand monetary stimulus.
Both central banks have meetings in coming days, and investor expectations for greater policy divergence have helped push Japan’s currency down about 7 percent from its 2 1/2-year high reached in the wake of the June 23 Brexit vote.