The Hawkish Fedspeak maintains the dollar king, but the yen has dropped to a 20-year low

The Hawkish Fedspeak maintains the dollar king, but the yen has dropped to a 20-year low ...

TOKYO, April 15 (Reuters) - The dollar rose to a two-decade high against the yen, keeping it nearing a two-year high to the euro on Friday, as more hawkish comments from Federal Reserve officials strengthened expectations for stronger policy.

For the first time since May 2002, the greenback was 0.43% higher at 126.40 yen.

The euro slowed 0.14% to $1.0812, reverting to a temporary low of $1.0785, a level that has not been discovered since April 2020.

On Thursday, New York Fed President John Williams said a half-point rate rise next month was "a very reasonable option," which is indicating that even more cautious policymakers are on board with faster monetary tightening.

By contrast, European Central Bank President Christine Lagarde indicated in the same time that there was no clear timetable for the ECB's rate to begin to rise, adding that it may be weeks or even months after the central bank's stimulus plan was reduced in the third quarter.

"Williams spoke openly about the need to hike rates more swiftly and beyond neutral," said Tim Riddell, a Westpac macro strategist.

By contrast, the ECB "revealed a more dovish reaction function to the inflation news," according to the economist.

Treasury yields in the United States have resumed their climb overnight, with a two-day decline, further boosting the greenback. Treasuries did not trade in Tokyo on Friday, owing to the Good Friday market holiday in the United States, as well as other regions including Australia, Hong Hong, and the United Kingdom.

The dollar index rose 0.08% to 100.48, dredging back to the two-year high of 100.78, which was reached on Thursday.

For the week, it has risen 0.64%, while the euro has decreased 0.58%.

The dollar has risen 1.71%, registering a sixth week of growth for the year.

Japanese Finance Minister Shunichi Suzuki warned on Tuesday that the government is monitoring yen moves and their implications on the economy "with a sense of urgency."

"Despite resigning verbal intervention from Japanese policymakers in recent weeks, USD/JPY has continued to rise alongside higher US yields," Goldman Sachs analysts said in a note.

"We believe that direct FX involvement is on the rise, and we should see it increased after USD/JPY enters the 127-130 range," said the authors.

Despite the fact that the Australian dollar jumped near a three-week low of $0.7392 on Wednesday, last trading down 0.2 percent on the day at $0.7404.

Bitcoin, a cryptocurrency, had continued to strengthen at a four-week low of $39,218.15, putting the last remaining amount at $40,005.50.

"Bitcoin is in the danger zone as risky assets are falling as the bond market selloff resumes," writes Edward Moya, a senior market analyst at OANDA.

"If it falls below $38,000, it might become bleak and ugly very quickly."

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