Business News

Dollar Strengthens Against Yen

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The dollar strengthened against the yen for a third consecutive day as Congress’ extension of the debt ceiling and higher Treasury yields lifted USD/JPY off 111.40. And although downbeat U.S. economic data prevented the dollar from challenging 112.00 on Monday, USD/JPY held onto a constructive gain of 0.40% and closed at its highest level in five weeks.

USD/JPY breached the 50-day moving average for the first time since mid-March during the Asian session and continued to march higher until anemic U.S. income and consumption data coupled with data showing a slow-down in the manufacturing sector shoved the dollar back to 111.40 mid-morning. The dollar perked back up when Treasury Secretary Steven Mnuchin said that “ultra-long term bonds could absolutely make sense for America”, driving up the yield on the 30-year long bond by 4 basis points and luring buyers back to the dollar. After a brief misstep at 111.90 that sent the dollar back towards 111.60, the USD/JPY snapped back and clung to 111.80 into the North American close.

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