Today, the Dollar strengthened across the board, hitting an 11 month high to the Yen
On Wednesday, the Dollar reached an 11-month high to the Yen and a 1-month high on the Euro.
The Federal Reserve's economic forecasts resulted in traders downplaying expectations of further monetary easing.
The greenback had hit a session high at 83.32 Yen, which was its highest level since mid-April.
A few other factors contributed to this. The U.S. 2-year Treasury yields have, for example, touched a 7 and a half month high after solid retail sales data, which made the Dollar less attractive as a funding currency for carry trades. It seems that Tokyo exporters were also reluctant to sell it as they expect more strength in the short term.
The recent easing steps by the Bank of Japan, the country's trading deficit and strong demand for fossil fuels after the recent nuclear crisis, have also contributed to the Dollar rising nearly 10% on the Yen from early February.
The greenback has also gained against other currencies, with its index hitting a 7 and a half week high of 80.42.
Meanwhile, in Europe, Germany's ZEW survey data leaped to its highest level since June 2010, a move which is prompting many economists to believe that Europe's largest economy has recovered from a weak patch
On Wednesday, the Dollar reached an 11-month high to the Yen and a 1-month high on the Euro.
The Federal Reserve's economic forecasts resulted in traders downplaying expectations of further monetary easing.
The greenback had hit a session high at 83.32 Yen, which was its highest level since mid-April.
A few other factors contributed to this. The U.S. 2-year Treasury yields have, for example, touched a 7 and a half month high after solid retail sales data, which made the Dollar less attractive as a funding currency for carry trades. It seems that Tokyo exporters were also reluctant to sell it as they expect more strength in the short term.
The recent easing steps by the Bank of Japan, the country's trading deficit and strong demand for fossil fuels after the recent nuclear crisis, have also contributed to the Dollar rising nearly 10% on the Yen from early February.
The greenback has also gained against other currencies, with its index hitting a 7 and a half week high of 80.42.
Meanwhile, in Europe, Germany's ZEW survey data leaped to its highest level since June 2010, a move which is prompting many economists to believe that Europe's largest economy has recovered from a weak patch
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