U.S. dollar rockets to 20-year peak vs yen on Fed, BOJ policy difference
The dollar surged on Tuesday to a 20-year high against the Japanese yen, underpinned by the divergence in monetary policy between a Federal Reserve determined to keep a lid on soaring inflation and a Bank of Japan that has kept interest rates ultra-low.
The greenback hit 128.97 yen, the highest since May 2002. It was last up 1.5% at 128.94 yen. The dollar has risen 5.9% on the yen so far this month, on pace for the largest monthly percentage rise since 2016.
“The BOJ has done the opposite of normalization. They have dug their heels in,” said Richard Benson, co-chief investment officer at Millennium Global Investments in London.
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While Japan’s core consumer price index (CPI) data, to be released on Thursday, likely rose 0.8% in March from a year earlier, faster than a 0.6% gain in February, the level is still way below the BOJ’s long-held inflation target of 2%.
The dollar index, which measures the greenback against six other currencies, also climbed on Tuesday, rising past 101 for the first time in more than two years. It was last up 0.2% at 100.98.
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https://finance.yahoo.com/news/nothing-stops-yen-slide-falls…