The yen strengthened past 100 per dollar for the first time since the aftermath of the U.K.’s vote to leave the European Union, as prospects the Federal Reserve will leave interest rates on hold this year added to the pressure for Japanese policy makers to ease again.
The dollar weakened against its developed-market peers Tuesday in the absence of signs the Fed is set to further diverge from the Bank of Japan and European Central Bank, which are boosting stimulus to spur flagging growth.
The yen jumped as much as 1.3 percent to 99.95 per dollar, a level unseen since June 24. It was at 100.05 as of 11:37 a.m. London time. Futures show 45 percent odds that U.S. policy makers will increase their benchmark rate by year-end, down from a 49 percent probability on Aug. 11.