Dollar Gains on Rate Expectations as Yen Falls Past 160
The dollar strengthened on Tuesday as global bond selloffs and inflation worries mounted. Meanwhile, the Japanese yen retreated past 160 per dollar despite rising pressure on the central bank to hike rates.
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The dollar strengthened during Tuesday's late evening session as renewed Gulf attacks sparked a global bond selloff, pushing USD/JPY past 160. Renewed strikes in the Middle East drove Brent Crude Oil above $91 a barrel, stoking inflation fears worldwide. The currency move pressures the Bank of Japan to raise interest rates while traders price in a 65% chance of a Federal Reserve hike in September.
