Ups Rise As Dollar Rate The Fed seems closer. – Dailyforex

By: DailyForex.com

The dollar hit a 1-month high against the yen on Monday after comments from Federal Reserve President Janet Yellen, that the prospects of rising US interest rates short term are higher than expected so far.

Political developments in Tokyo have also joined to support the dollar against the yen, following the announcement by Japanese Prime Minister Shinzo Abe that he would delaying an increase in sales tax scheduled for next April in two and a half years.

Yellen said on Friday that the Fed should raise interest rates “in coming months” if growth economic increases and the labor market continues to improve.

that mention was just what the forex market needed to push even more dollar and bullish after a recent wave of optimistic economic indicators from the US and comments of key Fed officials pointing to a tightening in the short term.

the dollar moved above the 111.00 yen for the first time since late April, reaching 111.03 yen at one point, eventually rising 0.5 percent to 110.97.

the euro hit a 2 and a half months at 1.1097 on Monday and was trading at 1.1104, down 0.1 percent. The yen fell broadly, with the euro rising 0.6 percent to 123.20 yen and the Australian dollar rising 0.5 percent to 79.52 yen.

Asian stocks fell with the MSCI Asia Pacific index excluding Japan, down 0.2 percent. Japan’s Nikkei index rose 0.9 percent.

According to Michiro Naito, managing director of equity derivatives and quantitative strategies at JPMorgan, “The market is afraid of ‘negative surprises’” he added that investors are still reluctant to take large positions until after deciding the rate hike.