Dollar climbs to 2-year, 5-month high against yen

Kyodo

The U.S. dollar advanced sharply against the Japanese currency Monday, touching ¥86.79, the highest level in roughly two years and five months, on speculation thatthe United States could possibly avert a fiscal crisis.

At 5 p.m., the dollar traded at ¥86.69-79, up from ¥85.85-95 yen at 5 p.m. Friday. The euro was quoted at $1.3190-3200 and 114.40-50 yen against $1.3211-3221 and ¥113.72-82 late Friday.

The dollar gained ¥9.83 from the end of 2011, while the euro added ¥14.80.

In 2012, the dollar lost ground near ¥76 in February against the backdrop of the European debt crisis and monetary easing in the United States. The dollar later bounced to around ¥84, then back to around ¥80.

In November, the dollar started gaining as prospects grew that Shinzo Abe, an advocate of bold monetary easing in Japan, would become Japan’s prime minister after the December election.