English
The US dollar jumps to a 20-year high against the Japanese yen
The US dollar jumped to a 20-year high against the Japanese yen on Tuesday, helped by the monetary policy differential between the Fed, which is determined to curb inflation, and the Bank of Japan, which is keeping interest rates at a very low level.
The greenback rose 1.55% to 128.97 yen, its highest level since May 2002, and the dollar recorded gains of more than 5.9% against the yen so far this year, and is heading to record the largest monthly increase in percentage terms since 2016.
The rise of the dollar caused the yellow metal to decline during the trading session on Tuesday, as gold prices fell more than 1%, and US gold futures fell 1.44% to $ 1957.70 an ounce.
The dollar index, which measures the performance of the US currency against a basket of six competing currencies, also jumped, surpassing the 101 level for the first time in more than two years.
On Monday, St. Louis Fed President James Bullard reiterated his forecast that US interest rates would rise to 3.5 percent by the end of the year to curb inflation.
The dollar received support from the continued rise in US Treasury yields, and the yield on the benchmark 10-year Treasury bonds recorded 2.93%, the highest level since December 2018.
The dollar jumped against the Swiss currency to its highest level since June 2020 at 0.9520 francs.
