Kevin Buckland

TOKYO (Reuters – The U.S. currency rose against the Japanese yen to their highest point in over a month on Tuesday. It was lifted by a rise in Treasury yields overnight, as traders bet that the Federal Reserve would raise its interest rates early despite a spike in COVID-19.

The greenback rose up to 115.395 Japanese yen, as the long-term Treasury yields surged 12.5 basis point overnight to reach 1.6420%. This was the highest level since Nov. 25.

Markets have priced in the first U.S. interest rate hike by May. Two more are expected by the end 2022.

The currency was close to its one-week peak of 96.328 on Monday, according to the.

Euro traded at $1.13065 after a one-week low of $1.12795 overnight.

Shinichirokadota (senior FX strategist) stated that the market has priced in a U.S. rate rise scenario, or the risk of it, in 2022. That is the main support for the dollar. Barclays Tokyo (LON)

Investors remained positive that the lockdowns could be avoided, despite the impact of the Omicron variant’s coronavirus on global travel and public service.

Monday’s approval by the U.S. Food and Drug Administration for the use of a third amount of the medication was granted. Pfizer (NYSE:) and BioNTech’s COVID-19 vaccine, for children 12-15 years of age. The time required for booster shots has been reduced from six to five months following primary doses.

Close to the $0.7184 low reached during the previous session, the Australian dollar hovered around $0.7184.

From Monday Sterling was flat at $1.3480. It dropped to $1.3431 on Monday.

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Prices for currency bids at 0039 GMT

Description: RIC U.S. Last Close Pct. Change YTD High Bid Low

Previous changes

Session

Euro/Dollar

$1.1305 $1.1299 +0.05% -0.56% +1.1307 +1.1293

Dollar/Yen

115.3400 115.2600 +0.07% +0.28% +115.3500 +115.3400

Euro/Yen

130.40 130.27 +0.10% +0.06% +130.4200 +130.2500

Dollar/Swiss

0.9178 0.9186 -0.08% +0.63% +0.9189 +0.9177

Sterling/Dollar

1.3476 1.3481 +0.00% -0.33% +1.3485 +1.3480

Dollar/Canadian

1.2751 1.2746 +0.04% +0.85% +1.2755 +1.2742

Aussie/Dollar

0.7194 0.7191 +0.05% -1.02% +0.7198 +0.7185

NZ

Dollar/Dollar 0.6788 0.6788 +0.01% -0.83% +0.6791 +0.6785

All spots

Tokyo’s best spots

Europe’s top spots

Volatilities

Tokyo Forex Market Information from BOJ