US dollar hits 29-month high against Yen

The US dollar hit a 29-month high against the Japanese yen into the upper 87-yen range on Friday after the US Congress reached a deal to avert the so-called fiscal cliff of tax increases and spending cuts. At 2:20 p.m. (0520 GMT), the dollar traded at JPY 87.75-76 against JPY 87. 20-30 in New York at 5 p.m. Thursday. Japan's financial markets were closed Thursday for the New Year holidays. The greenback climbed to JPY 87.78 at one point in the morning, its highest level since July 28, 2010. The yen's weakening trend also continued on expectations on new Prime Minister Shinzo Abe will intensify pressure on the central bank to further ease monetary policy. Reflecting the weaker yen, buy orders overwhelmed Tokyo stocks, sending the benchmark 225-issue Nikkei Stock Average to end the morning with advancing 270. 92 points, or 2.61 percent, from the previous session on December 28, at 10, 666.10.