The pair is testing a multi-year high in early Asia in a continuation of the recent bull-run amid speculation that last week’s bold monetary action by the Bank of Japan would debase the yen. The BOJ launched Monday the new program of monetary easing after having decided last week to double the monetary base over the next two years as it seeks to achieve annual consumer inflation of 2% in such a time frame. The dollar reached Y99.41, the highest level since May 2009. The greenback was last traded above Y100 in April 2009. The late upturn on Wall Street will also support the dollar amid expectations about robust earnings growth at U.S. firms, which have just entered the quarterly reporting season. The Standard & Poor’s 500 Index rose 0.63% and yields on Treasury’s 10-year notes climbed three basis points. The rate moved from Y97.57 to Y99.58 on Monday.
EasyForexNews Research Team