The U.S dollar, on Friday, February 10, hit its highest level in 10 days against the yen ahead of a meeting of the U.S. and Japanese leaders, putting it on course for its best week against a basket of major currencies since mid-December.
The dollar index against a basket of major currencies was up another 0.1 percent in morning trade in Europe on Friday, trading as high as 100.87 – its strongest since Jan 30 .DXY, Reuters reports.
Against the yen, the chief gainer from a wobble in global risk appetite earlier this week, it was up 0.2 percent at 113.48 yen, having risen as high as 113.75 yen JPY=. The euro was marginally lower at $1.0645 EUR= after losing 0.4 percent the previous day.
“Currency policy may not be a dominant topic at the summit, and that would be positive for the dollar,” said Shusuke Yamada, chief Japan FX strategist at Bank of America-Merrill Lynch.
The dollar has fallen steadily against the euro and yen since mid-December as Trump focused on protectionist trade policies, ran into opposition to some of his executive orders, and appeared to step away from the United States’ long-held strong-dollar policy.
But the new president spoke out on stimulus measures on Thursday, promising a “phenomenal” tax plan within a few weeks in a White House meeting with airline executives.
“The dollar is supported by the Trump announcement on taxation,” said Thu Lan Nguyen, a currency strategist with Commerzbank in Frankfurt.
Meanwhile, the euro is on track to shed more than 1 percent in a week dominated by perceptions that political risk in the euro zone is growing. Nguyen said she expected more hedging of currency exposure to April’s French elections in the weeks ahead.
