Investing.com - The U.S. dollar was broadly higher against its major counterparts on Monday, as the Bank of Japan's move to curb the persistently strong yen boosted demand for the greenback.
During European morning trade, the greenback was sharply higher against the yen, trading close to two-month high with USD/JPY surging 2.96% to hit 78.07.
Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The dollar was also sharply higher against the euro, with EUR/USD tumbling 1.06% to hit 1.3996.
The single currency came under pressure as investors worried that European leaders' plans to bolster the region's lenders could fail and that they were struggling to finance the enhancement of the euro zone's bailout fund.
Elsewhere, the greenback was up against the pound and the Swiss franc, with GBP/USD dropping 0.65% to hit 1.6021 and USD/CHF rising 0.85% to hit 0.8708.
Earlier Monday, official data showed that U.K. bank lending rose slightly more-than-expected in September while mortgage approvals rose in line with expectations.
Meanwhile, the greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.57% to hit 0.9975, AUD/USD tumbling 1.38% to hit 1.0553 and NZD/USD declining 1.27% to hit 0.8105.
Official data showed earlier that New Zealand building consents dropped unexpectedly in September, tumbling 17% after an upwardly revised 16.6% increase the previous month.
Analysts had expected building consents to rise 2.0% in September.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.23% to hit 76.14.
Later in the day, the U.S was to produce a report on manufacturing activity in the Chicago area.
During European morning trade, the greenback was sharply higher against the yen, trading close to two-month high with USD/JPY surging 2.96% to hit 78.07.
Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The dollar was also sharply higher against the euro, with EUR/USD tumbling 1.06% to hit 1.3996.
The single currency came under pressure as investors worried that European leaders' plans to bolster the region's lenders could fail and that they were struggling to finance the enhancement of the euro zone's bailout fund.
Elsewhere, the greenback was up against the pound and the Swiss franc, with GBP/USD dropping 0.65% to hit 1.6021 and USD/CHF rising 0.85% to hit 0.8708.
Earlier Monday, official data showed that U.K. bank lending rose slightly more-than-expected in September while mortgage approvals rose in line with expectations.
Meanwhile, the greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.57% to hit 0.9975, AUD/USD tumbling 1.38% to hit 1.0553 and NZD/USD declining 1.27% to hit 0.8105.
Official data showed earlier that New Zealand building consents dropped unexpectedly in September, tumbling 17% after an upwardly revised 16.6% increase the previous month.
Analysts had expected building consents to rise 2.0% in September.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.23% to hit 76.14.
Later in the day, the U.S was to produce a report on manufacturing activity in the Chicago area.