Investing.com - The broadly stronger dollar rose to fresh six year peaks against the yen on Monday and was at almost two year highs against the euro, supported by expectations for an early hike in U.S. interest rates.
USD/JPY hit highs of 109.75, the most since August 2008 and was last up 0.36% to 109.65.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, touched a four year high of 85.93, and was last up 0.08% to 85.84, after notching up its eleventh consecutive weekly gain last week.
Demand for the dollar continued to be underpinned after data on Friday showed that the U.S. economy grew at an annual rate of 4.6% in the second quarter, the fastest pace in two-and-a-half years.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner.
In contrast, the Bank of Japan and the European Central Bank look likely to stick to a loose monetary policy stance amid concerns over faltering economic growth.
EUR/USD touched lows of 1.2664, the weakest since November 2013 and was last trading at 1.2679.
Investors were turning their attention to Wednesday’s euro zone inflation data and the outcome of Thursday’s ECB meeting, while Friday’s U.S. nonfarm payrolls report was also in focus after August’s report fell short of expectations.
Germany was to publish data on consumer prices later Monday.