Wednesday, November 13, 2013

Dollar Rises to 2-Month High Versus Yen on Fed Bets



The dollar strengthened to a two-month high against the yen as signs the world’s largest economy is gathering momentum boosted the appeal of the U.S. currency.

New Zealand’s dollar fell to a seven-week low as the central bank said it sees signs that restrictions introduced last month to prevent a housing bubble are starting to work. The greenback rose versus most of its 16 major peers as a gauge of national business activity improved after payroll gains last week topped forecasts. The yen declined before the government releases its quarterly economic-growth data on Nov. 14. Ten-year Treasury note yields rose to the highest since Sept. 18.

The dollar rose 0.5 percent to 99.64 yen at 5 p.m. in New York after advancing to 99.80 yen, the strongest level since Sept. 13. It last touched 100 yen on Sept. 11. The U.S. currency fell 0.2 percent to $1.3436 per euro. The yen weakened 0.7 percent to 133.87 per euro.

The Bloomberg U.S. Dollar Index, which monitors the greenback against 10 major counterparts, rose 0.1 percent to 1,022.05 after reaching 1,025.01, the highest since Sept. 13.

Benchmark 10-year yields climbed three basis points, or 0.03 percentage point, to 2.77 percent after reaching 2.79 percent. Similar maturity Japanese government bonds yielded 0.59 percent.
(Source: Bloomberg)

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