24.06.201304:33:55UTC+00Dollar surges to 2-week high against Yen on fed tapering outlook

The dollar progress to a two-week high against the yen before data that may add to the case for the Federal Reserve to pare back bond purchases.

Dollar Strength

The gauge rose 1 percent on June 19 when the Federal Open Market Committee said “downside risks to the outlook for the economy and the labor market” have diminished, as it left the monthly pace of bond purchases at $85 billion. Chairman Ben S. Bernanke said the same day that the Fed may begin dialing down its quantitative easing this year and end it in mid-2014 if the economy is achieving the central bank’s objectives.

Fisher Speaks

The Dallas Fed’s Fisher, one of the most vocal critics of the central bank’s quantitative easing, speaks on U.S. monetary policy and the economy today in London. He won’t speak from prepared remarks, and will take questions from the audience and media.

‘Feasible’ Abenomics

“Dollar-yen is in focus after Abe’s victory in the run-up to upper house elections was even more clear-cut than thought,” said Yuji Saito, the director of foreign-exchange at Credit Agricole SA (ACA) in Tokyo. “Markets see Abenomics as having become more feasible.”

Victory for the LDP coalition in a national ballot for the upper chamber of parliament expected on July 21 would end the hung parliament that has hampered decision-making. The LDP won by a landslide in a December general election, pledging a three-part strategy to revive the economy, including unprecedented monetary easing.

Declines in the euro were limited before the release of a survey of German business confidence today. The Ifo institute’s business climate index, based on a survey of 7,000 executives, probably rose to 105.9 in June from 105.7 last month.