Dollar near 5-year peak to yen before Fed; Aussie weak amid China risks

U.S. one dollar and Chinese Yuan are seen in this illustration taken May 7, 2021. REUTERS/Dado Ruvic/Illustration

Register now for FREE unlimited access to Reuters.com

Register

TOKYO, March 16 (Reuters) – The dollar traded near a five-year high against the yen on Wednesday as investors awaited a Federal Reserve policy decision, with the Ukraine war and China’s surging COVID-19 cases as the backdrop.

Treasury yields surged ahead of the Federal Open Market Committee decision, buoying the dollar against its Japanese peer, with traders fully priced for a first interest rate hike in three years, and giving 13% odds of a half-percentage point increase.

The dollar was also hovering near its highest level this month to the Aussie after commodity prices pulled back from multi-year peaks as markets stayed optimistic that Russia-Ukraine talks could lead to an end to hostilities.

Register now for FREE unlimited access to Reuters.com

Register

Australia’s currency also came…

Read more…