Investing.com - The dollar was higher against the yen on Monday, trading just below last Wednesday’s highs, as prospects for an earlier than expected rate hike by the Federal Reserve continued to underpin dollar demand.
USD/JPY hit highs of 102.57, the highest since last Wednesday, and was last up 0.22% to 102.47.
The pair was likely to find support at 102.00, Friday’s low and near-term resistance at 102.67, last Wednesday’s high.
Market watchers brought forward expectations for a rate increase by U.S. central bank after Fed Chair Janet Yellen suggested last week that a rate hike might come about six months after the bank’s stimulus program ends, which is expected to happen in the fall.
Investors shrugged off a report showing that Chinese manufacturing activity deteriorated again in March.
The preliminary reading of China’s HSBC manufacturing purchasing managers'' index fell to an eight-month low of 48.1 in March from a final reading of 48.5 in February. Analysts had expected the index to tick up to 48.7.
The dollar was steady against the euro, with EUR/USD trading at 1.3794, holding above last Thursday’s two-week lows of 1.3748.
Elsewhere, the common currency moved higher against the yen, with EUR/JPY rising 0.21% to 141.36.
The euro zone was to release preliminary data on private sector activity later in the session.