Concern that FOMC may remove stimulus measures encouraged appeal for the US Dollars. As a result the Dollar reached its week high versus the Yen and the Euro, according to Bloomberg.
Many economists tend to suppose that FOMC is likely to become a catalyst of USD rising as FED will probably announce the withdrawal of its economy stimulus measures. The USD rose to 92.17 yen as of 7:45 a.m. in London from 91.29 yen in New York Sept. 18. It jumped to $1.4645 per euro from $1.4712. The U.S. currency advanced to $1.6143 per pound from $1.6271, after earlier touching $1.6135, the highest level for the last three weeks. The USD index climbed 0.6 percent to 76.878.
The JPY fell to its three-week bottom versus the Euro after Hirohisa Fujii new Finance Minister refused to make comments meaning he would let the Japanese currency rise.
It is expected that Japan will remain the only country among big economies that will keep its benchmark interest rate at a record low. Japan`s Overnight call rate is now at the lowest level worldwide . The economy is likely to expand 0.8 percent next year after declining 6 percent in 2009 putting assets in the world’s second-largest economy not in favor comparing to those in countries with higher borrowing rates.