Japanese Yen Tumbles to One-month Lows Versus Dollar after Dudley’s Hawkish Comments
Japanese Yen plunged to nearly one-month lows on Tuesday as U.S. dollar was broadly stronger versus most of its peers. Meanwhile, Asian shares advances with Japan’s Nikkei rising more than 1 percent to a near two-year high on Tuesday, causing investors to pour into risky assets instead of playing safe with the safe-haven currency like Yen.
Encouraged by rebound in U.S. hi-tech shares which helped the Nasdaq 100 Index jumped the most since November, equity rally extended to Asia. The Yen dropped more than 0.2 percent against its American counterpart to trade around 111.700 after hitting 111.775 at one point – the lowest level since May 26th.
Hawkish comments from a Federal Reserve official also helped ease concerns over the strength of the world’s largest economy. Speaking on Monday, New York Fed President William Dudley said that tightening in the labour market that would boost wages should help drive up inflation.
Dudley’s comments did not only reinforce the message from last week’s Fed meeting but also supported expectations for the U.S. central bank to keep raising interest rates in the coming months.
Buy Stop at 111.700, Take profit at 112.100, Stop loss at 111.500