Dollar Hits 3-Month High above 151 Yen

Tokyo, Oct. 22 (Jiji Press)--The dollar hit a three-month high above 151 yen in Tokyo trading on Tuesday amid speculation that the United States' budget deficit could widen if former President Donald Trump wins the presidential election in November.

The U.S. currency stood at 151.00-01 yen at 5 p.m., up from 149.83-84 yen at the same time Monday.

The greenback was supported by a rise in U.S. Treasury yields on the back of an emerging view that Trump's possible victory could lead to an increase in fiscal spending and reignite inflation.

Treasury yields were also pushed up by a remark from a senior official of the U.S. Federal Reserve that the pace of interest rate cuts would be moderate.

Meanwhile, a series of media reports that Japan's ruling bloc may lose its majority in Sunday's general election fueled speculation that the Bank of Japan may be unable to raise interest rates due to possible political turmoil, a currency brokerage official said.

[Copyright The Jiji Press, Ltd.]