The US Dollar was higher against the Japanese Yen and the Australian Dollar during Monday trading in London. Financial markets are still preparing themselves for 2018’s first interest rate increase from the Federal Reserve Bank which could be announced this week. Jerome Powell, the new head of the US central bank, will be eagerly watched for any clues as to whether there will be a policy shift from the Fed. For the most part, markets have priced in an imminent rate increase with another two likely later this year; whether a fourth will be considered is what markets are anxious to learn.
As reported at 11:04 am (GMT) in London, the USD/JPY was trading at 106.033 Yen, a gain of 0.05%; the pair earlier hit a peak of 106.151 Yen while the low is posted at 105.679 Yen. The AUD/USD is trading lower at $0.7708, down 0.1465%; the pair has ranged from a session trough of $0.76868 to a peak of $0.77230.
Shinzo Abe Authority Questioned
Analysts say that while the Dollar has experienced several weeks of gains, against the Japanese Yen concerns over eroding support for the Prime Minister are weighing on the safe haven currency. Many investors have questioned the way he handled the recent scandal which involves a land sale to his wife; analysts say that that issue is raising doubts over his success at pushing through his economic agenda.