U.S. Dollar Rallies Broadly on Data

By: Barbara Zigah

The U.S. Dollar appreciated broadly in Asian trading today, with the greenback striking a multi-month peak against the Japanese Yen. As reported at 1:12 p.m. (JST) in Tokyo, the U.S. Dollar was trading at 83.14 Japanese Yen, retreating from the 83.22 Japanese Yen struck earlier and which was the highest price in 11-months. Since the beginning of last month, the U.S. Dollar has gained nearly 9% on the greenback, attributed in part to strong economic data from the U.S., but also to the Bank of Japan’s intervention. Analysts anticipate that the USD/JPY could continue to strengthen in the short term and that any pullback of the dollar would likely be limited.

Following last week’s better than expected labor numbers, the release of data which showed a 1.1% increase in retail sales also is helping to buoy sentiment for the greenback. Given that, the Federal Reserve upgraded its outlook for the U.S. economy, anticipating “moderate” growth in the coming quarters with a continued drop in the unemployment rate, though it is expected that it will remain relatively high. News that the majority of large U.S. banks passed the Federal Reserve’s annual stress test is also hitting a positive note among investors.