2017.10.1903:20:00UTC+00Dollar Strengthens to 2-Week Peak Against Yen, Supported by U.S. Yields

The dollar firmed to reach its highest in almost two weeks versus the yen on Thursday, bolstered by the recent rise in U.S. bond yields, as the market focused on who will next lead the Federal Reserve along with the weekend's Japanese election.

The near-term focus is on U.S. President Donald Trump's decision on the next chair of the Federal Reserve. Investors are also worried about whether Republican leaders can gain enough votes from their own members to pass a tax reform bill which is significant to the president's agenda.

The dollar index, which tracks the U.S. currency versus a basket of six major peers, last stood 93.39.

The greenback climbed as high as 113.095 yen in early Asian trade, its highest level since Oct. 6. The dollar last changed hands at 113.03 yen.

The week's rise in U.S. bond yields helped lend support to the greenback. The two-year U.S. Treasury yield increased to its highest since November 2008 on Wednesday on the back of expectations for tighter global monetary policy.

Trump will announce his decision on who will be the chair of the Federal Reserve in the “coming days,” according to White House spokeswoman Sarah Sanders.

The greenback has gained a boost this week after Stanford University economist John Taylor emerged as a major candidate for the next Fed chair.

The euro climbed to $1.1799.

One focus for the common currency is the European Central Bank's policy meeting coming up next week.