Dollar edges higher ahead of payrolls, resumes climb versus yen - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The dollar extended a rebound versus major peers on Friday, also resuming its rally against the yen, ahead of a key US jobs report that could cement the potential for a 50 basis-point Federal Reserve interest rate hike next month.

The US currency also garnered support due to its status as a preeminent safe haven, with peace talks between Russia and Ukraine stumbling, though they are set to resume later on Friday.

The Federal Open Market Committee will next decide policy on May 5, with CME Group’s FedWatch tool showing 71% odds of a half-point rate increase. The dollar rose 0.41% to 122.18 yen, its first gain in four days as the currency pair tracked moves in long-term US Treasury yields.“The case for USD/JPY going much higher is still compelling as the Fed’s rate hikes will revolutionise the hedging arithmetic for JPY-based investors and sensitivity to hedging costs is rising,” RBC Capital Markets strategists wrote in a note.

 

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