Dollar falls, but hits one-month high against the yen following bet rate hike by

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By Gina Lee – The dollar was lower Tuesday morning in Asia but climbed to its highest level in more than a month against the Japanese yen. A surge in US Treasury yields overnight as investors bet on an anticipated US Federal Reserve interest rate hike also gave the US dollar a little boost.

The price that tracks the greenback against a basket of other currencies edged down 0.04% to 96.180 by 8:52 p.m. ET (1:52 GMT).

The pair advanced 0.09% to 115.43.

The pair edged up 0.13% to 0.7200, with the Australian dollar close to the nearly two-week low of $ 0.7184 reached in the previous session. The pair advanced 0.07% to 0.6789.

The pair was up 0.32% to 6.3727. released earlier today showed the for December was a better-than-expected 50.9.

The pair rose 0.07% to 1.3481. The pound has held steady since Monday, when it fell to $ 1.3431 for the first time since November 29.

The Japanese, Chinese and Australian markets all reopened after a holiday.

The dollar hit 115.395 yen for the first time since November 25, boosted by long-term U.S. Treasury yields which climbed 12.5 basis points overnight to 1.6420% for the first time since November 24.

Investors also continue to bet that the Fed will hike interest rates in 2022, with money markets fully accommodating a first hike by May and two more by the end of 2022.

“The market is anticipating a more aggressive US rate hike scenario, or at least the risk of it, in 2022, and this definitely remains the main support for the dollar,” Shinichiro Kadota, senior currency strategist at Barclays.

The number of global COVID-19 cases also continues to rise, thanks to the omicron variant. Global travel and utilities continue to be delayed, with the hike also likely to delay reopening more US schools after the holidays. Thousands of schools have already delayed their openings, with New York City hitting a 33% positivity rate.

However, investors were hopeful that the lockdowns could be avoided. Meanwhile, the United States Food and Drug Administration on Monday cleared a third dose of Pfizer Inc. (NYSE:) / BioNTech SE (F 🙂 COVID-19 vaccine for children ages 12 to 15. The regulator also shortened the time frame for all booster injections to five months, compared to six months after the primary doses.

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