The dollar rose to a 13-year high against the yen

28.05.2015

On Thursday, the dollar rose to the maximum of 13 years against the yen, supported by expectations that the economic recovery in the US will accelerate the timing rise in interest rates.

The pair USD/JPY hit 124.30, the peak from June 2002, and the last time it was at 123.73. The dollar against the yen rose to highest level since December 2002, and the Australian dollar fell to a minimum of six weeks after the release of a report on investment companies.

"Funds, counting on the Fed rate hike in September, increased long positions in the dollar, which was a major factor in the appreciation of this week", - explained the director of strategy at Nomura Securities currency market Yunosuke Ikeda.

Another factor was the increase in prices of Japanese stocks caused investors willing to take risks.

"In the long run, almost nothing can prevent further decline of the yen," - said a senior strategist at RBC currency market Greg Moore.

Traders note that Japanese officials may try to stabilize the yen with their comments. On Wednesday, several members of the government have already warned the markets against overly active game on the decline of the yen.

Published last week's economic data showed that US investment activity increased, improved consumer confidence and home prices in the US continued to rise, indicating that the economy is gaining momentum after the recession in the first quarter.

Expectations of a rebound of the economy in the first quarter contribute to the view that the Federal Reserve will begin to raise interest rates around September.

The euro rose against the dollar, the EUR/USD is traded at 1.0940, near one month low of 1.0818.

The euro retreated from lows on Wednesday after the Greek government announced the start of the preparation of the agreement with international lenders, indicating progress in the lengthy negotiations to unblock financial aid.

However, European officials played down expectations of entering into arrangements, saying that negotiators still have a lot of work before it will be possible to reach an agreement.

The euro rose to week highs against the weakened yen, with EUR/JPY getting up with 0.35% to 135.27.

Meanwhile, the index of USD, which measures the American currency against the basket of six major currencies, fell 0.24% to 97.11 with a five-week peak of 97.88.

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