US dollar remains strong against the yen

Published: 3 Jul at 9 AM Tags: Euro, Dollar,

The US dollar has hit its highest level against the yen since the end of May. The lift comes as analysts wait for jobs data that could further support expectations that the Federal Reserve could begin to wrap up its monetary stimulus programme.

However, the markets will close early today and stay closed tomorrow in the US for the Independence Day holiday.

A survey by Reuters revealed that economists expect the unemployment rate to drop to 7.5 per cent and 165,000 jobs to have been added last month. The greenback has been lifted along with Treasury yields by expectations that the Fed will begin to trim back its bond-buying programme.

If the jobs data turns out to be disappointing, the Fed may rethink, but few analysts do not believe that the dollar will continue to strengthen. The yen remains under pressure as the Bank of Japan continues with its strict monetary policy and aims for two per cent inflation over the coming two years.

Following a high of 100.86 yen, the dollar managed a rise of 0.1 per cent to end at 100.72 yen. The dollar index is also up 0.1 per cent to 83.591. The euro is down 0.1 per cent to $1.2971. On Tuesday the single currency fell as low as $1.2962.