Dollar’s 3-Week Rally Versus Yen Is the Biggest Since ’95
- Flows continue to ‘build into the dollar’: Bank of America
- Odds of additional U.S. rate hikes by June rise to 66 percent
What's the Biggest Risk to Dollar Dominance?
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The dollar posted its biggest three-week gain versus the yen since 1995 as traders view a U.S. interest-rate increase next month as a certainty.
The greenback has surged about 10 percent since Nov. 4 to an eight-month high against the Japanese currency. Expectations that President-elect Donald Trump will implement policies to spur inflation and growth drove U.S. Treasury yields to their highest in a year, underpinning demand for the dollar and strengthening the case for the Federal Reserve to raise interest rates. Minutes of the central bank’s November meeting this week showed officials said the labor market has tightened, with some indicating a rate hike should happen in December.