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Yen and Aussie drop in Asia as Fed rate lift views firm

On Tuesday, the Australian dollar along with the Japanese yen held weaker during Asia trade, as the greenback’s gains continued with sentiment firmly hoping for a Fed rate lift by the end of 2016.

The currency pair USD/JPY traded at 104.44, ascending 0.25%, while AUD/USD was worth 0.7599, tumbling 0.18%, in a light regional data day. Additionally, GBP/USD reached 1.2216, falling 0.19%.

The US dollar index, measuring the greenback’s actual value against other major six major currencies, leapt 0.16%, hitting 98.80.

Overnight, the greenback remained at eight-month peaks against other major currencies in light trade, as expectations for an American rate lift  before the end of 2016 kept boosting demand for the greenback. Traders currently price a 73.6% probability of a rate lift at the Fed's December gathering, according to Fed Rate Monitor Tool.

The greenback remained broadly supported right after New York Fed President William Dudley told the previous week that the US major financial institution will most probably increase interest rates later this year if the US economy keeps to its current trend. 

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