The U.S. dollar reached its highest point versus the yen in nearly three years on Monday as investors remained confident that the Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls.
The jobs data pushed U.S. bond yields higher, and as a result, the yen, which is sensitive to yield differentials, fell to 112.84 yen per dollar in early London trading on Monday. The yen was also affected by a slight tilt towards riskier currencies. The pound, as well as the Aussie both, gained slightly against the U.S. dollar. Thus, the dollar index fell to 94.137. But the index was not far from a one-year high of 94.504. Oil prices also continue to affect the yen.
Dollar, yuan, and pound
China Evergrande Group’s problems had a limited impact on the Chinese yuan. The offshore yuan traded at 6.4370 per dollar towards the top of its recent range.
The Australian dollar or the Aussie as some people call it firmed a little, edging nearer to its highest in a month. Commodity prices as well as partial reopening of Sydney helped to boost the Australian dollar.
The British pound traded at $1.3634, extending its recovery from a nine-month low set late last month.
The Canadian dollar traded at C$1.2450 per greenback, having hit a two-month high of C$1.24465. It reached C$1.24465 thanks to surprisingly strong Canadian payrolls data as well as lofty oil prices.
The euro was not so lucky, as it traded at $1.1575, hovering a tad above its Wednesday’s low of $1.1529, its worst result since July last year.
Elsewhere, Bitcoin added 3.5% to a new five-month high of $57,092, extending gains made over the weekend. Another major cryptocurrency Ether gained 5% to $3,620.