Investing.com - The dollar remained broadly higher against the other major currencies on Monday after Federal Reserve Chairman Ben Bernanke said last week that the bank could start to unwind its asset purchase program.
During European afternoon trade, the dollar was trading close to two-week highs against the yen, with USD/JPY rising 0.35% to 98.17.
Demand for the dollar continued to be underpinned after Fed Chairman Ben Bernanke said last week the bank could begin slowing asset purchases by the end of this year and wind them down completely by the middle of 2014 if the economy continues to pick up.
The yen came under pressure after Japan’s ruling party, led by Prime Minister Shinzo Abe, won in majority in Tokyo assembly elections on Monday, indicating support for the government’s economic policies.
The dollar was trading close to two-week highs against the euro, with EUR/USD down 0.42% to 1.3067.
Sentiment on the euro remained fragile as peripheral euro zone bond yields continued to grind higher amid concerns over the prospect of an end to the Fed’s stimulus program.
The yield on Spanish 10-year bonds rose above 5% for the first time since early April on Monday, up from 4.88% on Friday. Meanwhile, the yield on Italian 10-year bonds climbed to 4.7% from 4.58% on Friday.
The single currency showed little reaction after a report showed that the Ifo index of German business climate improved to 105.9 in June from 105.7 in May, in line with market expectations.
Elsewhere, the greenback was higher against the pound, with GBP/USD falling 0.30% to 1.5373.
The dollar was also higher against the Swiss franc, with USD/CHF rising 0.17% to 0.9360.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD dropping 0.37% to 0.9179, NZD/USD falling 0.49% to 0.7702 and USD/CAD advancing 0.87% to 1.0550.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.47% to 82.98.
During European afternoon trade, the dollar was trading close to two-week highs against the yen, with USD/JPY rising 0.35% to 98.17.
Demand for the dollar continued to be underpinned after Fed Chairman Ben Bernanke said last week the bank could begin slowing asset purchases by the end of this year and wind them down completely by the middle of 2014 if the economy continues to pick up.
The yen came under pressure after Japan’s ruling party, led by Prime Minister Shinzo Abe, won in majority in Tokyo assembly elections on Monday, indicating support for the government’s economic policies.
The dollar was trading close to two-week highs against the euro, with EUR/USD down 0.42% to 1.3067.
Sentiment on the euro remained fragile as peripheral euro zone bond yields continued to grind higher amid concerns over the prospect of an end to the Fed’s stimulus program.
The yield on Spanish 10-year bonds rose above 5% for the first time since early April on Monday, up from 4.88% on Friday. Meanwhile, the yield on Italian 10-year bonds climbed to 4.7% from 4.58% on Friday.
The single currency showed little reaction after a report showed that the Ifo index of German business climate improved to 105.9 in June from 105.7 in May, in line with market expectations.
Elsewhere, the greenback was higher against the pound, with GBP/USD falling 0.30% to 1.5373.
The dollar was also higher against the Swiss franc, with USD/CHF rising 0.17% to 0.9360.
The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD dropping 0.37% to 0.9179, NZD/USD falling 0.49% to 0.7702 and USD/CAD advancing 0.87% to 1.0550.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.47% to 82.98.