Home Forex Yen, Aussie weaker in Asia as Fed rate hike views firm

Yen, Aussie weaker in Asia as Fed rate hike views firm

by Paul

The Aussie and yen held weaker in Asia on Tuesday as dollar gains continued with sentiment firmly expecting a Fed rate hike by the end of the year.

USD/JPY changed hands at 104.44, up 0.25%, while AUD/USD traded at 0.7599, down 0.18, in a light regional data day. GBP/USD traded at 1.2216, down 0.19%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.16% to 98.80.

Overnight, the dollar remained at eight-month highs against the other majors currencies in light trade on Monday, as expectations for a U.S. rate hike before the end of the year continued to boost demand for the greenback. Investors currently price a 73.6% chance of a rate hike at the Fed’s December meeting.

The dollar remained broadly supported after New York Fed President William Dudley said last week that the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.

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