US Dollar Hits Two-Month High

A day before the end of the year, the US dollar hit a two-month high of 92.26 yen. The movement of the greenback reflected the recent strength it had developed after market sentiments surrounding the outlook of US interest rates changed. The forex market now seems to be on the lookout for a timeframe for the Federal Reserve tightening its policies.

Kazuyuki Takami, a senior manager at the forex trading department at Bank of Tokyo-Mitsubishi UFJ, said that the market is trying to gauge if the Fed exit strategy will be implemented sooner than expected. The market also aims to closely analyze upcoming US economic data.