Dollar hits one-month high vs yen as Fed rate bets lift U.S. yields

Published by
Reuters UK

By Kevin Buckland TOKYO (Reuters) – The U.S. dollar reached its strongest level in more than a month against the Japanese yen on Tuesday, lifted by a jump in Treasury yields overnight as traders bet on an early Federal Reserve interest rate hike despite surging COVID-19 cases. The greenback rose as high as 115.395 yen for the first time since Nov. 25, as long-term Treasury yields leapt 12.5 basis points overnight to touch 1.6420% for the first time since Nov. 24. Money markets have fully priced in a first U.S. rate increase by May, and two more by the end of 2022. The dollar index, which measu…

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