Dollar at 14 years peak after the Fed's decision to raise the rate

The dollar reached 14 years peak to a basket of major currency rivals on Thursday after the US Federal Reserve has increased the number of expected rate increases in 2017, reviving lasted for a month rally and hitting the currencies of emerging markets.
The US Federal Reserve raised its key interest rate by a quarter point and indicated to accelerate the increase in the cost of borrowed funds in 2017 after promises of President-elect Donald Trump to spur economic growth with tax cuts, increased spending and deregulation.
The range of federal funds rate has been raised to 0,50-0,75 percent as expected by financial markets, however, the signals that the Fed could raise rates three times in 2017, instead of two, as expected in September, seems to have caught them by surprise.
By 5.53 GMT the dollar index to continued rally and rose by 0.57 percent to 102.32. It touched the mark of 102.620, the highest since January 2003. Euro fell by 0.3 percent to $ 1.0503 after falling to a minimum of 21 months to $ 1.0468.
Dollar on Thursday struck a 10-month high against the Japanese yen, reaching 117.860 yen, rising by 0.3 percent to 117.50.

UOB forecast range for USD/JPY

According to currency strategists at UOB Group the forecast for USD/JPY remains bullish and suggests a period of consolidation before further growth. They say that the fluctuations of the US dollar yesterday made a mixed outlook. Further, it is expected fluctuations to be in the range of 112.84/114.77.
The bank already have closed their long positions in the pair and have a neutral opinion about it today, they do not expect any change in the opinion of analysts. The pair is currently moving around in its early stage of the consolidation phase, as it will probably go to a very wide range of 111.50/115.00, analysts say.

Three-week rally in the dollar against the yen is the biggest since 1995

Today is Friday - the last trading day of the week. If the dollar against the yen at the moment ended the day near current levels, this would be the most significant three-week rise since 1995 of the US dollar against Japanese rival, analysts say.
The opening of the markets after the celebration of Thanksgiving in the US was marked by continued growth in yields of US Treasury bonds. This pushed the USD/JPY up in Asian session, they added.
Markets calculated in the price the likelyhood of raising interest rates by the Federal Reserve in December long ago. But the flow of strong economic data continues to affect positive mood. Currently 64% of market participants expect another increase in US interest rates until June 2017, except for December, analysts reported. Earlier this week, the probability was 58 percent and half month ago - twice as low.
Technically USD/JPY now appears extremely overbought. 14-day indicator RSI (relative strength index) for 10 consecutive sessions held in the area more than 70%. Moreover, there are no signs of a possible reversal or correction, analysts conclude.

The dollar steadied after pre-holiday growth

The dollar stabilized in the course of trading on Thursday, breaking the majority of last year's highs against the euro.
Given the fact that US markets are closed because of Thanksgiving Day, trading activity was low yesterday after the dollar set a series of new highs early in the session in Europe, expanding its growth after strong economic data from the United States published on Wednesday.
The US currency hit an eight-month peak against the Japanese yen and the high of nearly 14 years to a basket of six major rivals.
In addition, the dollar renewed record highs in a number of emerging market currencies, including the Indian rupee, the Turkish lira and the offshore renminbi trading in which are held outside of mainland China.
The dollar's rise is largely due to expectations that the policy of Donald Trump will stimulate inflation, which will lead to an increase in Fed interest rates and potentially increase the inflow of capital into the country.
In developed markets, most strongly affected by the election of Trump is the yen. It fell by 0.6 percent to 113.15.
The euro is trading around the level of $1.0572 after falling to a low of $ 1.0518, while the dollar index held near 101.58, retreating from the morning peak 102.05.

Nikkei is up for the 6th consecutive session due to the strengthening of the dollar against the yen

Japan's Nikkei index rose for the sixth consecutive session on Thursday because of hopes for growth of earnings of Japanese exporters against the background of rise of the dollar against the yen.
The dollar rose after upbeat economic data in the US, which further strengthened the likelihood of the Fed raising rates.
Nikkei closed the trading session rising by 0.9 percent to 18.333.41 points.
The broader Topix index also gained 0.9 percent, ending trading session at 1.459,96 points and showing an increase for 10th consecutive session.
Index JPX-Nikkei 400 gained 0.9 percent to 13.105,50 points.
USD/JPY is currently trading at 113.32 yens per dollar.

Dollar demonstrates rally against the Trump's victory

The dollar held close to the peak of three and a half months against the yen on Friday after rising last night, caused by the growth of the markets bets for the US economy and the rise in interest rates during the presidency of Donald Trump.
By 5.30 GMT the dollar fell slightly to 106.63 yen after rising to 106.950 yen at night - a maximum of 21 July.
The dollar is preparing to finish the week woth 3.3 percent growth against the Japanese yen, although earlier it was believed that the safe yen would gain against dollar in case of Trump's victory on presidential election in the United States.
The dollar on Wednesday briefly fell to around 101 yen after the Republican defeated Democratic candidate Hillary Clinton.
Now, however, the dollar demonstrates rally amid risk aversion and US bonds yields rise due to expectations that the Trump policy will support costs and accelerate inflation.
Trump promised large-scale of tax cuts and developing of infrastructure that can increase the US budget deficit.
Mexican peso stood at the level of 20.55 to the dollar, close to the record low reached on Wednesday.
The euro traded near $1.0906 after losing 1 percent last night and preparing to show a drop by 2.3 percent for the week.
The dollar has not changed to a safe Swiss franc, holding at a level of 0.9860 after falling to near three-month low of 0.9550 on Wednesday.
Sterling held position against the dollar, trading just below the monthly peak of $1.2585, reached on Thursday.