Dollar Rises to One-Month High Against Yen

 
   By Hiroyuki Kachi 
 

        The dollar rose to a one-month high against the yen in Asian trading hours Tuesday, as dollar buying across the board on expectations for the U.S. plan to raise rates helped push up the greenback against the Japanese currency.
        Meanwhile, the New Zealand dollar gained on growing anticipation ahead of its central bank's rate decision later this week.
        The dollar touched Y124.40, its highest since June 17, midday and again around 0450 GMT. It was trading at Y124.31 late Monday in New York.
        The greenback was tracking its firm tone that followed comments by Federal Reserve Bank of St. Louis President James Bullard who said Monday there are good odds the U.S. central bank will raise rates at its September policy meeting.
        Having returned from the three-day weekend, Japanese corporate investors including importers saw the headlines and the resultant higher U.S. Treasury yields as a catalyst to buy the U.S. currency. But investors still remained hesitant to seek upside due to a lack of fresh trading cues.
        "It is remaining steady but it could still be called a slight move," said Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow.
        Mr. Sakai said the fact that the dollar's inability to build momentum after touching the Y124.40 mark is proof that investors are cautious about seeking further upside as the greenback is now getting close to so-called "Kuroda ceiling" of around Y125.
        Bank of Japan Gov. Haruhiko Kuroda last month caused the dollar to slide roughly Y2 from around Y124.60 after saying the yen was unlikely to weaken any more in relative terms. He later clarified his position by saying he was neither trying to assess the nominal exchange rate nor forecast its future movement.
        The U.S. currency was higher against the euro, which fell to $1.0818 midday, compared with $1.0826 overnight. The common currency hit as low as $1.0808, its lowest level since April 24. The euro was also at Y134.54 unchanged from overnight.
        In other currency trade, the New Zealand dollar rose to $0.6594 and Y82.03, respectively from $0.6568 and Y81.60 on expectation for the central bank's rate decision Thursday.
        The Kiwi also got a boost after comments by Prime Minister John Key that the recent fall in the New Zealand dollar was faster than expected and is helping support the economy, as are lower interest rates.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.04% at 88.71.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        July 21, 2015 01:40 ET (05:40 GMT)

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