The Japanese yen on Tuesday advanced against the world's reserve currency, achieving gains from its lowest rate in nearly two weeks, Bloomberg reports.
The currency of the Pacific Rim nation also noted a third-straight day of gains against the common currency of the European Union after a Chinese official said the Bank of China will monitor rates on money markets.
"It is the broader liquidity story which is having an impact on asset markets and leading to some equity market volatility … this is filtering into FX," head of European FX strategy Ian Stannard with Morgan Stanley told Reuters on Tuesday. "But overall the dollar trend will remain very much in place … the dollar will not only be supported by the Fed tapering debate but if we see equity markets supported by Fed reassurance, that will be dollar-positive."
The Japanese yen's advance against the U.S. dollar was as high as 0.3 percent; its climb against the euro was as high as 0.2 percent.
Concerns about the U.S. Federal Reserve pulling back and discontinuing its economy-spurring measures also benefited the yen, according to Reuters.
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