The dollar surged roughly one percent against both the yen and Swiss franc on Monday, extending its bounce after U.S President Barack Obama announced that congressional leaders had reached an agreement to avert a debt default .
Commodity currencies climbed with the New Zealand dollar hitting a fresh post-float high against the U.S. dollar, adding to gains made earlier on growing hopes that American lawmakers were close to clinching a deal.
Against the Japanese currency, the dollar rose to as high as 78.051 yen cnbc_comboQuoteMove('popup_jpy=_ID0EUAAC15839609'); [JPY= 77.55 0.15 (+0.19%) ] cnbc_quoteComponent_init_getData("jpy=","WSODQ_COMPONENT_JPY%3d_ID0EUAAC15839609","WSODQ","true","ID0EUAAC15839609","off","false","inLineQuote"); , rising more than a full yen from an intraday low, and pulling away from a four-month low hit late last week.
"This is likely to spur some unwinding of the excessive yen buying positions that were built up," said Koji Fukaya, director of global foreign exchange research at Credit Suisse Securities in Tokyo.
"We could see the dollar head back up close to 80 yen, but after that its moves will hinge on forthcoming economic data," Fukaya said.
Against the Japanese currency, the dollar rose to as high as 78.051 yen cnbc_comboQuoteMove('popup_jpy=_ID0EUAAC15839609'); [JPY= 77.55
"This is likely to spur some unwinding of the excessive yen buying positions that were built up," said Koji Fukaya, director of global foreign exchange research at Credit Suisse Securities in Tokyo.
"We could see the dollar head back up close to 80 yen, but after that its moves will hinge on forthcoming economic data," Fukaya said.
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