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Dollar Hits Two-Week Peak Against Yen as Dow Hits Record Highs

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The US dollar hit a two-week peak against the yen on Thursday morning, after a rise in US bond yields on Wednesday.

U.S. 10-year Treasury yields hit a one-week high of 2.352 percent yesterday, after rising six basis points so far this week. Also of interest to retailers is the upcoming Japanese elections, in which the current Prime Minister Shinzo Abe’s coalition is expected to secure a majority when voters head to the polls next Sunday. A victory for Abe would be a strong signal for a continuation of the political and monetary stability. At 12:50 PM HK/SIN, the dollar was up 0.02 percent against the yen, trading 112.94.

The Federal Reserve’s Beige Book report was released yesterday, showed that the U.S. economy expanded modestly in September and early October, despite some setbacks due to the hurricanes. The Fed has said that hurricanes Harvey and Irma have some negative impact on third-quarter growth, but that this effect will only be temporary. There was still evidence of an acceleration of inflation despite the fact that the country has inflation back to its 2 percent target rate, and is currently sitting at 1.3 per cent.

Later today, U.S. President Donald Trump will meet with Federal Reserve chair Janet Yellen, one of the five candidates for the position, if Yellen ends the term of office at the beginning of February 2018. Trump is expected the decision, announced in the coming days.

Dow Closes at a record high

The Dow Jones Industrial Average closed above 23,000 for the first time on Wednesday, driven by a rise in IBM shares after the company reported a return to sales growth. Yesterday’s record marks the fourth time in 2017, the Dow has reached 1,000-point milestone. The market rally was also supported by solid earnings and expectations that the President Trump’s proposed tax cuts fuel will continue to be the growth.