Investing.com - The dollar traded up to six-month highs against the yen on Monday amid expectations that the Federal Reserve will soon start scaling back stimulus, while a deal to limit Iran’s nuclear activities curbed safe haven demand for the yen.
During European afternoon trade, USD/JPY advanced 0.49% to 101.75, the highest since May 29, from 101.25 on Friday.
Demand for the dollar continued to be underpinned by expectations that the Fed could start tapering its stimulus program at one of its next few meetings.
The yen remained under heavy selling pressure amid heightened expectations that Bank of Japan will implement additional easing measures next year.
Speaking Monday, BoJ Governor Haruhiko Kuroda reiterated that the bank will continue with its massive stimulus program and said the bank was prepared to take further steps if necessary in order to meet its 2% inflation target.
Demand for the traditional safe haven yen was also hit after Iran agreed to limit its nuclear program in exchange for sanctions relief, as part of an agreement with the U.S. and five other world powers.
Elsewhere, the euro was lower with EUR/USD down 0.33% to 1.3509 from 1.3557 on Friday.
The euro came under pressure after European Central Bank governing council member Ardo Hansson said the bank is ready to make further cuts to interest rates and is “technically ready” for negative deposit rates.
The pound was also lower against the dollar, with GBP/USD slipping 0.25% to 1.6180.
In the U.K. data on Monday showed that mortgage approvals declined unexpectedly in October but remained close to the previous month’s four-year high.
The British Banker\'s Association said that the number of new mortgages approved in October fell to 42,800 from September’s revised total of 43,200, which was the highest since December 2009.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.50% to 0.9116.
The greenback was mixed to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD slipping 0.16% to 0.9154, NZD/USD climbing 0.20% to trade at 0.8201 and USD/CAD rising 0.39% to 1.0558.
The Australian dollar remained close to 11-week lows after Reserve Bank Governor Glenn Stevens said last week the bank believed that intervening in the currency market to lower the Aussie’s value could be effective in the right circumstances.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to 80.99.
During European afternoon trade, USD/JPY advanced 0.49% to 101.75, the highest since May 29, from 101.25 on Friday.
Demand for the dollar continued to be underpinned by expectations that the Fed could start tapering its stimulus program at one of its next few meetings.
The yen remained under heavy selling pressure amid heightened expectations that Bank of Japan will implement additional easing measures next year.
Speaking Monday, BoJ Governor Haruhiko Kuroda reiterated that the bank will continue with its massive stimulus program and said the bank was prepared to take further steps if necessary in order to meet its 2% inflation target.
Demand for the traditional safe haven yen was also hit after Iran agreed to limit its nuclear program in exchange for sanctions relief, as part of an agreement with the U.S. and five other world powers.
Elsewhere, the euro was lower with EUR/USD down 0.33% to 1.3509 from 1.3557 on Friday.
The euro came under pressure after European Central Bank governing council member Ardo Hansson said the bank is ready to make further cuts to interest rates and is “technically ready” for negative deposit rates.
The pound was also lower against the dollar, with GBP/USD slipping 0.25% to 1.6180.
In the U.K. data on Monday showed that mortgage approvals declined unexpectedly in October but remained close to the previous month’s four-year high.
The British Banker\'s Association said that the number of new mortgages approved in October fell to 42,800 from September’s revised total of 43,200, which was the highest since December 2009.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.50% to 0.9116.
The greenback was mixed to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD slipping 0.16% to 0.9154, NZD/USD climbing 0.20% to trade at 0.8201 and USD/CAD rising 0.39% to 1.0558.
The Australian dollar remained close to 11-week lows after Reserve Bank Governor Glenn Stevens said last week the bank believed that intervening in the currency market to lower the Aussie’s value could be effective in the right circumstances.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to 80.99.