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Greenback keeps to its 3-week highs

On Monday, the greenback didn’t change a lot against other key currencies, still fluctuating close its three-week peak as expectations for June rate increase by the Fed kept supporting demand for the evergreen buck.  

The currency pair USD/JPY dipped 0.57%, trading at 109.50, thus pulling away from Friday’s three-and-a half week high of 110.58.

The Japanese yen gained support after Monday’s data showed that the country’s trade surplus for April came in at about ¥823.5 billion, far higher that forecasts for ¥493 billion.

A separate report unveiled that Japanese factory activity contracted at the fastest tempo for about three years in May as new orders edged down.

The gloomy data contributed to pressure on the Bank of Japan to boost corresponding measures to ensure growth.

The reports arose after a gathering of the G7 finished on Saturday with the US warnings to Tokyo against intervening to weaken Japan’s national currency.

Meanwhile, the greenback remained supported after the Fed’s April gathering minutes on Wednesday indicated that interest rates could surge in June.

 

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