Greenback jumps in opposition to yen as Fed officers trace extra price hikes to come back

NEW YORK, Aug. 2 (Reuters) – The dollar strengthened against the Japanese yen on Tuesday as remarks by U.S. Federal Reserve officials hinted that more rate hikes are imminent in the coming weeks. next time.

A trio of Fed officials from across policy suggested Tuesday that they and their colleagues remain firm and united in raising U.S. interest rates to a level that would dampen activity and inflation. . read more

“We get a dose of stability when the Fed says that … triggered a strong move back into the greenback,” said Edward Moya, senior market analyst at Oanda in New York. .

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“What you’re seeing is dollar dominance isn’t going away anytime soon, as the interest rate differential looks like it could be even wider against the yen.”

Investors remain interested in watching Friday’s US monthly jobs report.

The US dollar index, which measures the greenback against six peers, was last up 0.9% at 106.31. The index has fallen slightly recently as investors have begun to reassess how aggressive the Fed is with future rate hikes.

Against the yen, the dollar rose 1.2% at 133.12 yen.

The dollar edged higher for a session against the yen as yields in the US Treasury market rose. The US two-year yield, which reflects interest rate expectations, rose to a one-week high.

Earlier in the session, the dollar was weaker against the yen as concerns about US House Speaker Nancy Pelosi’s visit to Taiwan made investors more risk-averse.

Ms. Pelosi said her trip showed US solidarity with the Chinese-claimed island, but China condemned the highest-level US visit in 25 years as a threat to peace and stability. read more

China’s offshore yuan fell 0.09% against the greenback at $6.7780/USD.

The Australian dollar fell 1.5% following the Reserve Bank of Australia’s move to raise interest rates by 50 bps to 1.85%, in line with expectations. read more

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Currency bid price at 4:30 p.m. (2030 GMT)

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Reporting by Caroline Valetkevitch; Additional reporting by Saikat Chatterjee in London; Edited by David Holmes, Susan Fenton and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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