The US dollar touched a two-month high against the Japanese yen and remained strong against other major counterparts on higher than awaited US core consumer price index.
Friday’s figures showed the core CPI climbed 0.3% in April despite escalating shelter and medical care costs, the biggest increase since January 2013, from 0.2% increase in March.
Versus the yen, the greenback leaped at ¥121.70 from Friday’s ¥120.64. The dollar closed at $1.0986 per euro and $1.5483 per British pound.
Whether the currency can surpass the ¥122.04 mark depends on the next few US data. While a June rate hike is no longer possible, upbeat indicators backing the CPI will ignite “hopes that the Fed will provide hints at the June meeting on when it might hike rates,” said Junichi Ishikawa, Market Analyst at IG Securities.
The material has been provided by InstaForex Company – www.instaforex.com