The world's reserve currency surged higher in value on Monday against the currency of Japan, benefiting from Standard & Poor's upgrading the credit outlook of the U.S., Reuters reports.
Formerly at "negative," the credit outlook of the U.S. stands as "stable" as of Monday. Economic data noted that Japan's economy grew more quickly during the first quarter of this year as compared to estimates.
"Last week with elevated nerves about what Fed tapering means and when it could start, we saw this knee-jerk rush to safe havens like the yen," FX strategy global head Sara Yates with JP Morgan Private Bank told Reuters on Monday. "I think what we are seeing at the moment in the market is the unwinding of that."
The U.S. dollar's advance against the monetary unit of the globe's third-biggest economy climbed as high as 1.8 percent on the first trade session of the week.
Policy makers with the Bank of Japan were convening on Monday, which was commanding the attention of some investors and analysts, according to MarketWatch. The Pacific Rim nation has undertaken aggressive monetary stimulus measures since the middle of this past December.
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