Dollar Hits 24-Year Peak Against Yen – 6 September, 2022

The dollar reached a 24 year peak against the the Japanese yen, as well as new highs versus the Australian and New Zealand dollars after  U.S. economic data reinforced the view that the Federal Reserve will continue aggressive policy tightening. The euro continued to languish not far from Tuesday’s two-decade low as European Union ministers prepare to meet this week to discuss the energy crisis that is hammering industry and squeezing households. An overnight report showed the U.S. service industry picked up unexpectedly last month, confirming that the economy is not in a recession. The dollar jumped as high as 143.57 yen early in the Asian day, before trading 0.34% stronger than Tuesday at 143.28. The euro was 0.2% lower at $0.9888 after dipping as low as $0.9864 overnight. Sterling dropped 0.3% to $1.1483, just above Mondays low of $1.1444. Against a basket of major currencies, the dollar index was 0.08% stronger to 110.43, just below Tuesdays 20 year high of 110.57. The Aussie declined 0.23% to $0.67165, and earlier touched $0.67105 for the first time since July 14, while the kiwi dropped 0.43% to $0.6015, the lowest since May 2020.