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Foreign exchange markets in New York and Chicago rose for a second day Tuesday, and the benchmark U.K. pound edged higher against the dollar as the U.N. announced it would increase its interest rate.
The dollar was up 1.1 percent against the greenback at 113.19 yen, its highest since mid-March.
The greenback rose 0.6 percent against a basket of currencies, with the euro also up 0.1 percentage point.
The euro climbed against the yen after the U,N.
raised its interest rates for the first time since November.
The central bank on Tuesday raised its benchmark interest rate by a quarter point from 0.75 percent to 1.25 percent.
It also raised its target for the pace of interest payments on its reserves from 0 percent to 0.5 percent.
The U.U.N.’s rate announcement came as the world’s central bank was expected to announce its next rate increase in early March.
The U.F.C. is expected to raise rates again in September, at a time when inflation has already begun to rise in the U., U.C., and U.L.O.
The European Central Bank has also signaled its intention to raise interest rates this year.
The Bank of Japan has also said it is likely to raise its benchmark rate in September and could even announce the increase in April.
The United States, which has long struggled to maintain a steady flow of foreign exchange reserves, has been pushing for more easing of restrictions on the use of foreign currency.
The Federal Reserve raised its key interest rate to a record-low 0.25% in January.
That was the first increase in more than three years, but the central bank has been unable to bring inflation down.
The Fed has said it will gradually reduce its $4.3 trillion in overnight lending to the U-M lending market to ease concerns about inflation.
The currency has also rallied in the past week.
The Swiss franc fell 1.2 percent to $1.3764 an euro, while the euro was up 0,5 percent at $1,4204.
The Japanese yen, which lost 1.6% to 86.9 yen at 105.55 yen, also gained.
The euro rose 1.5% to $2.2485.
