Dol­lar trad­ing at 2-month yen high

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

The dol­lar was near a two-month high against the yen on Thurs­day as traders in­creas­ingly bet that the Fed­eral Re­serve will hike in­ter­est rates as early as Septem­ber.

In Tokyo, the dol­lar bought 124.75 yen, against 124.88 yen in New York Wed­nes­day when it briefly crossed the 125 yen level, its high­est since early June. The euro stood at $1.0910 and 136.10 yen com­pared with $1.0904 and 136.18 yen in US trade.

On Wed­nes­day, the In­sti­tute for Sup­ply Man­age­ment s pur­chas­ing man­agers in­dex re­port on a July surge in US ser­vices sec­tor growth con­trasted with a dis­ap­point­ing num­ber on jobs growth last month from pay­roll firm ADP, with only 185,000 jobs added. Traders are now fo­cus­ing on Fri­day s of­fi­cial US em­ploy­ment fig­ures. The Fed has said any rate hike, widely ex­pected by Septem­ber or De­cem­ber, was de­pen­dent on signs of a pick-up in the world s top econ­omy. "Last night s (PMI) re­port fell squarely into the cat­e­gory of in­com­ing data re­leases that ar­gue strongly in favour of Septem­ber lift-off ," Ray At­trill, the global co-head of cur­rency strat­egy in Syd­ney at Na­tional Aus­tralia Bank, said in a com­men­tary. Dol­lar buy­ing sen­ti­ment also got a lift af­ter Fed­eral Re­serve Bank of At­lanta Pres­i­dent Dennis Lock­hart told The Wall Street Jour­nal this week that he sup­ports lift­ing rates in Septem­ber bar­ring an un­ex­pected eco­nomic down­turn.

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