Dollar makes gains on the yen

Published: 2 Apr at 10 AM Tags: Euro, Dollar,

The dollar has hit its highest level against the yen in 10 weeks as traders reveal an appetite for riskier assets. The greenback is currently worth 103.84 yen as investors gamble on China introducing measures to stimulate the economy. The euro is also benefitting and is at a three-week peak of 143.46 yen.

This week Japan pushed its sales tax from five to eight per cent, a move that is likely to see the dollar gain further on its Japanese counterpart. Investors are now focused on the ADP National Employment Report due out in the US. If economic data released by the US is weaker than expected there could be a reprieve for the yen.

The euro is up to $1.3804 after hitting a low of $1.3704 on Friday. A fall in German unemployment and increasing factory output across the eurozone means it is unlikely that the European Central Bank will announce further monetary easing after its policy meeting on Thursday.

Commodity currencies have benefited from speculation that China will inject capital to boost the economy after weak data from the manufacturing sector. The Aussie dollar has hit $0.9310, its highest level in four months.

The New Zealand dollar has reached $0.8639, its highest level in more than two years.