US dol­lar trad­ing near two-month high against the yen

The China Post - - BUSINESS INDEX & -

The U.S. dol­lar was near a twom­onth high against the yen on Thurs­day as traders in­creas­ingly bet that the U.S. 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 US$1.0910 and 136.10 yen com­pared with US$1.0904 and 136.18 yen in U.S. trade.

On Wed­nes­day, the In­sti­tute for Sup­ply Man­age­ment’s pur­chas­ing man­agers’ in­dex re­port on a July surge in U.S. 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 U.S. 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.

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.

Lock­hart told the pa­per it “will take a sig­nif­i­cant de­te­ri­o­ra­tion in the eco­nomic pic­ture for me to be dis­in­clined to move ahead.”

The green­back may move closer to the 125 yen level on Thurs­day ahead of the hir­ing data, Keisuke Hino, a for­eign-ex­change trader at Mizuho Bank in New York, told Bloomberg News.

The Bank of Ja­pan be­gins a two­day meet­ing Thurs­day, with all eyes on signs for when pol­i­cy­mak­ers may launch fur­ther eas­ing mea­sures.

The dol­lar was mixed against other Asia-Pa­cific cur­ren­cies.

It f ell t o SG$ 1.3843 f rom SG$1.3857 on Wed­nes­day, to 63.77 In­dian ru­pees from 63.86 ru­pees, and to 1,169.30 South Korean won from 1,172.63 won.

The green­back inched up to 13,524.50 In­done­sian ru­piah from 13,498.0 ru­piah, to 45.78 Philip­pine pe­sos from 45.75 pe­sos, and to 35.18 Thai baht from 35.09 baht.

The Aus­tralian dol­lar eased to 73.32 U.S. cents from 73.54 U.S. cents, while the Chi­nese yuan fetched 20.09 yen against 20.05 yen.

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