Forex - Dollar Touches 8-Month Highs versus Yen on Rate Hike View

© Reuters. Dollar rises to 8-month highs vs. yen on diverging monetary policy outlook

Investing.com - The dollar rose to its highest level in eight months against the yen on Monday, boosted by the contrasting monetary policy outlooks between the Federal Reserve and the Bank of Japan.

rose to a high of 114.73, the strongest level since March 15, before pulling back to trade at 114.28, still up 0.18% for the day by 03:31 AM ET (08:31 AM GMT).

BoJ Governor said on Monday that it will continue with its monetary easing policy, but added that the bank was closely watching the economic effects of prolonged stimulus.

Demand for the dollar continued to be underpinned by expectations that the Fed will stick to its plan for gradual monetary tightening.

Friday’s stronger-than-expected U.S. factory orders and service sector data saw investors look past an for October.

The nonfarm payrolls report showed a smaller than expected increase in jobs growth and a slowdown in wage growth.

The data did little to alter expectations that the Fed will raise interest rates in December for the third time this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 94.88, not far from the one-week high of 95.00 set overnight.

The euro was steady, with at 1.1605, while sterling was also little changed, with at 1.3083.

Investors were waiting for any fresh developments in plans and were also watching the progress of U.S. President Donald Trump's visit to Asia.

Trump said Monday that to sort out problems on trade between the world's biggest and third-largest economies.

Earlier, Trump vowed to push for a free and balanced trade partnership with Japan after decades of "massive trade deficits" but said relations with close ally Tokyo were "better than we have ever had".

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