Investor sentiment continues to push the US Dollar higher versus the Japanese Yen as expectations grow that the Federal Reserve could be on the verge of pushing through an interest rate hike later this month. The Dollar’s climb was more of a struggle against the common currency Euro which has, as of late, seemed relatively resilient. The latest news from the Federal Open Market Committee which makes monetary policy on behalf of the Federal Reserve comes from Lael Brainard who is a well-known dove; she said that a solid economic recovery in the US combined with improvements to the global economy meant raising rates soon could be “appropriate.”
As reported at 10:38 am (GMT) in London, the USD/JPY was up 0.41% and trading at 114.19 Yen; the pair earlier hit a peak of 114.3000 Yen, while the low was set at 113.6900 Yen. The EUR/USD was down 0.18% at $1.0532, not far from the session low at $1.0523.
Commodity-Linked Currencies Hit by Oil Price Drop
In Asia, the Aussie and Kiwi Dollars dipped against the US Dollar while in North America the Loonie, aka the Canadian Dollar, also fell. Lower oil prices globally are blamed on the fall in the commodity-linked currencies. The AUD/USD hit a 3-week low at one point to trade at $0.7615; currently the pair is at $0.7625. The NZD/USD struck a 6-week trough at $0.7098 and is now trading at $0.7109. The USD/CAD earlier hit C$1.3375 and is currently at C$1.3362.