Dollar Stages Longest Rally Since March Versus Yen on Fed Wagers
- Greenback gains seventh day as services rebound in September
- Probability of U.S. monetary tightening this year rises to 62%
How U.S. Jobs Data and the Fed May Impact the Yen
The dollar posted its longest rally since March against the yen as U.S. service companies expanded in September at the fastest rate in almost a year, leading traders to ramp up bets that the Federal Reserve will raise interest rates in coming months.
The greenback advanced for the seventh straight day against Japan’s currency as the sign of strength in the world’s biggest economy followed comments from Fed officials that revived speculation the central bank is getting closer to tightening policy. Chicago Fed President Charles Evans said Wednesday that one rate increase by year-end is likely if data continue to improve, while Richmond Fed President Jeffrey Lacker said he saw a case for raising rates.