Dollar surges to six-year peak on yen, Tokyo stocks cheer
Japanese shares jumped on Thursday after the dollar vaulted to a six-year peak on the yen as the Federal Reserve’s outlook for rising rates underlined the diverging path between the United states and the rest of the rich world.
In other regional share markets, the reception was mixed, with MSCI’s index of ex-Japan Asian shares falling to 12-week lows, on the spectre of rising U.S. rates and slower economic growth in China.
While the Fed maintained language suggesting that rate hikes would not happen for a “considerable time,” it also indicated Fed policymakers think it could raise borrowing costs faster than expected when it starts moving.
The market reaction also overshadowed a surprisingly soft reading on U.S. inflation, even as Fed Chair Janet Yellen emphasised that policy would be highly dependent on how the economy actually performed in coming months.
Source: Reuters- Dollar
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