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Singapore - The dollar rose to a three-week high against the yen as Asian investors carried on from their North-American peers in buying the greenback as Federal Reserve speakers pointed to strength in the US economy.
The US currency gained for a second day versus Japan’s after New York Fed President William Dudley said he was confident the expansion had a long way to go, while Chicago’s Charles Evans said fundamentals are good.
Tokyo traders were net buyers of dollars across the morning fixing, according to Asia-based currency traders who asked not to be named. Fed Vice chairperson Stanley Fischer will speak on Tuesday in Amsterdam.
“Dudley’s comments are driving the dollar rally,” said Kumiko Ishikawa, a foreign-exchange market analyst at Sony Financial in Tokyo.
“They reflect the Fed’s general feeling. Evans is a dove but today’s comments were hawkish. If Fischer strikes a hawkish tone in his speech later today, the dollar strengthening trend will continue.”
Australia’s dollar fell for a second day after Moody’s Investors Service downgraded the nation’s four biggest banks on Monday. Losses were briefly pared on Tuesday as minutes from the central bank’s June meeting said various forward-looking indicators pointed to continued growth in employment.
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