Dollar Extends Seven-Year High Versus Yen on Policy Divergence

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Forex Mini Account – The dollar extended a seven-year high against the yen after Federal Reserve minutes showed the U.S. moving closer to raising borrowing costs next year, while Japan pursues further economic stimulus.

The dollar rose above 118 yen even as the Fed minutes showed officials focused on inflation, which has stayed below the central bank’s 2 percent target for more than two years. The Australian and New Zealand dollars extended declines from yesterday before a report which economists say will show a gauge of manufacturing in China, the South Pacific nations’ largest trading partner, fell this month.

The dollar advanced 0.2 percent to 118.16 yen as of 9:44 a.m. in Tokyo, after touching 118.27, the strongest level since August 2007. Japan’s currency was little changed at 148.15 per euro, having earlier touched 148.38, the weakest since October 2008. The 18-nation euro slipped 0.1 percent to $1.2539.

Source : bloomberg