Dollar Hits One-Month High Against Yen

The increase in the Japanese Yen is an overnight incident. Even though the US Dollar was observed to decline in market value, it rose after being paired with the Yen.

Other currencies observed a similar trend. This includes the Australian Dollar, Chinese yuan, and Britain’s pound, to name a few.

One factor that is estimated to have caused this increase in the paired value is the bets placed by investors. The US Federal Reserve is expected to increase the interest rates. Many inventors are betting in the favor, boosting the value of the US Dollar in the market.

The US Dollar’s Value

Asian markets can be tricky in terms of foreign exchange. Despite the fall in the overall value of the US Dollar, it has managed to reach the highest level with the Japanese Yen.

Investors are placing their early bets on the side of the US Federal Reserve, increasing the rate of interest. This is known to cause a slight increase in the overall value despite the dollar going down by 0.04% as per the US Dollar Index.

It brought the value of the US Dollar to 96.180 as of 1:52 AM GMT. The price is in comparison to all the other currencies combined by the index.

However, when paired with other major currencies, it has gained a small percentage in the market.

The increase in the Asian market is strongest with the Japanese Yen. The value stands at 115.43, with an increase of 0.09%. Another Asian currency that has witnessed an increase in the valuation with the US Dollar is the Chinese yuan. The value comes to 1.3481 with an up percentage of 0.07%.

USD and JPY were last at their best on November 25, 2021. This is for the first time since then that they have performed at their highest.

In addition to investors’ bets, the performance is also reportedly boosted by the long-term US Treasury yields soaring 12.5 basis points.

Not just the Asian currencies, the US Dollar has also experienced an increasing trend with other major currencies.

The valuation comes to 0.7200 with the Australian Dollar, which is an increase of 0.13%. When paired with the New Zealand Dollar, the value stands at 0.6789 with an increase of 0.07%.

The valuation of the US Dollar with the Pound Sterling is 1.3481. This is an increase of 0.07% from the previously recorded value. If you are new to forex trading, it’s a good idea to learn more about forex brokers before delving into it.

After analyzing the performance and importance of the US Dollar in the international market, Shinichiro Kadota, a Senior FX Strategist at Barclay, highlighted that the foreign market was pricing in a more aggressive US rate hike scenario.

The Covid-19 pandemic poses threats to the hopes of investors. The Omicron variant is spreading rapidly. Governments are attempting to avoid a lockdown to protect the economy, but investors continue to remain dubious about the market.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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