Dollar Hits 11-mnth High Vs Yen On Fed
The dollar continued to move higher against its major counterparts with 11-month high against the yen and one-month high versus the euro on Wednesday following upbeat comments from the Federal Reserve about the U.S. economy.
The Japanese Yen slumped to its 11-month low of 83.56 yen in European trade as experts are afraid of taking short position on dollar, which may continue to strengthen the dollar.
The euro continued to fall against the dollar, falling to a one-month low of $1.30308 followed by breakdown its key support of $1.3054, the 50 percent retracement of a Jan. 16-Feb. 24 rally.
Yesterday, the dollar ended higher after retail sales in U.S grew 1.10% in February and The Fed slightly upgraded its outlook, expecting "moderate" growth over coming quarters and a gradual decline in the unemployment rate, although it said the jobless rate remained elevated.
Dollar has been gaining against the Yen over the past few months supported by Recent monetary easing steps by the Bank of Japan and the country's record trading deficit.
Also supporting the dollar is impressive stress tests’ results by the Fed, it done on 19 large U.S.banks, where just four failed to achieve the target.
The British pound gained to $1.5706 versus $1.5703, The Australian dollar also dropped against its U.S. counterpart, hitting a seven-week low of US$1.0465 and was recently trading at $1.0468.
On the other hand, the yen managed to hold the line against the euro, with the shared currency buying ¥109.165 yen, from ¥108.52 Tuesday.
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