Dollar eyes best week against yen in three months; cryptos leap
By Rae Wee
SINGAPORE (Reuters) — The dollar was headed for its best week against the yen in three months on Friday, after Federal Reserve Chair Jerome Powell and a chorus of Fed officials poured cold water on market expectations of a peak in U.S. rates.
In cryptocurrencies, bitcoin and ether held near multi-month highs, with renewed speculation over the imminent approval of an exchange-traded bitcoin fund breathing new life into the digital assets.
A slew of Fed policymakers including Powell on Thursday said they are still not sure that interest rates are high enough to finish the battle with inflation, comments taken as hawkish by markets and which sent the greenback rising.
The dollar stood near a one-year high at 151.38 yen on Friday and touched one-week highs against the Australian and New Zealand dollars.
«Powell's speech was quite hawkish, and that just really hit sentiment,» said Tina Teng, market analyst at CMC Markets (LON:CMCX).
The remarks from Fed officials came a week after the U.S. central bank left interest rates steady and cemented expectations that rates could have peaked, causing the dollar and Treasury yields to tumble in the aftermath.
The greenback, however, regained its footing this week and was eyeing a weekly gain of roughly 1.3% against the yen, its best performance since August.
«Dollar/yen did trend higher this week and it's now back above 151. It does raise the risk of the BOJ stepping into the (forex) market to strengthen the yen, but I think markets are expecting no intervention unless dollar/yen moves to about 152,» said Carol Kong, a currency strategist at Commonwealth Bank of Australia (OTC:CMWAY).
The Aussie and the kiwi were likewise headed for a 2.4% and 1.8% weekly decline against the
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