Dollar rises, yen marks three-year low

The dollar continued its gains on Tuesday morning in Asia, while the yen touched a new three-year low. Investors’ expectation that soaring energy costs will increase Japan’s demands for the dollar contributed to the yen’s decline. The dollar was also lifted by hopes that the United States will raise interest rates before its peers.

The U.S. Dollar Index that measures the greenback against other major currencies climbed 0.03% to 94.403 by 10:26 PM ET (2:26 AM GMT).

The USD/JPY pair tallied an increase of 0.05% to 113.36. The yen marked its weakest rate versus the dollar in five months.

The AUD/USD pair slid 0.20% to 0.7337, while the NZD/USD pair shed 0.22% to 0.6927.

The USD/CNY pair nudged 0.01% higher to 6.4506, while the GBP/USD pair fell 0.05% to 1.3589.

The U.S. Federal Reserve is still likely to start asset tapering in November and raise interest rates in 2022 due to surging energy prices and their inflationary impact.