The U.S. dollar rose to nearly two-month highs against the yen on Tuesday. The risk appetite is improved following the French election and investors focused on monetary policy and potential Federal Reserve interest rate hikes.
The dollar was up 0.88 percent against the yen at 114.25 yen , after earlier hitting its highest level since mid-March. The euro also rose against the yen, up 0.39 percent at 124.16 yen.
“The overall outlook remains solid”
Chief market analyst at Commonwealth Foreign Exchange in Washington, Omer Esiner, said for Bloomberg that “the U.S. economy saw a marked deceleration in the first quarter, the overall outlook remains solid and the Fed is still widely expected to raise U.S. lending rates in June and likely again in September".
Chinese shares rose after a five-day selloff brought the Shanghai Composite Index to the lowest level since October. Asian stocks slipped after rallying to a two-year high on Monday. Japan’s Topix retreated from the highest level since December 2015.