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The super dollar hit a 7-month low with the market attentive to the yen

The super dollar hit a 7-month low with the market attentive to the yen

Thanks to the initial strength of the British pound and the Japanese yen, the dollar indexwhich measures the performance of the greenback against a basket of six currencies, hit a seven-month low of 101.77, extending its sell-off from last week after data showed US consumer prices fell for the first time in more than 2 1/2 years in December.

The dollar stabilized in European trading, gaining ground against the pound, which was down 0.4% at $1.2185.

This week, FX markets are particularly focused on the Japanese yen, on speculation that the Bank of Japan will further tighten its yield control policy at its meeting this week, or drop it altogether.

The dollar fell to more than seven-month lows against the yen in early trading, before recovering to trade 0.4% higher at 128.35 yen.

Investors have been pushing for the Bank of Japan to abandon its ultra-easy monetary policy, which has sent yields on benchmark 10-year Japanese government bonds breaking above the central bank’s new ceiling for two sessions.

This Monday, the US markets will remain closed on Monday for a holiday, so operations will be scarce.

Source: Ambito

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