Rampant dollar hits new 24 year peak on the yen

The dollar climbed to a 24-year high on the yen on Monday after Japan's ruling conservative coalition's strong election showing indicating no change to loose monetary policies, and global growth fears helped the safe-haven dollar more broadly.

The dollar climbed to as high as 137.28 yen in morning trading, its highest since late 1998. It then pared those gains slightly and was last up 0.6 per cent at 136.93.

The dollar was also firm on the euro, which dropped 0.38 per cent to $1.0144 heading back towards a 20-year intraday low hit Friday, leaving the dollar index up 0.4 per cent at 107.3.

The Bank of Japan's (BOJ) policy of keeping Japanese rates pinned down to support the economy, combined with rising U.S. interest rates has been a major factor in the Japanese currency's recent weakness.

BOJ Governor Haruhiko Kuroda said earlier in the day the central bank "won't hesitate to take additional monetary easing steps as necessary".

The U.S. 10 year yield was last at 3.087 per cent having rallied last week.

Away from Japan, fears about the global growth outlook, particularly as central banks look to curb runaway inflation, were pushing flows to safe havens.

U.S. CPI data is due Wednesday and markets would likely interpret a high reading as a sign the U.S. Federal Reserve would need to raise rates even more aggressively to combat inflation.

Sterling was down 0.38 per cent against the stronger dollar at $1.1986 on Monday morning, having finished a volatile time last week not far from where it started.

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