Dollar eases off after 7-year peak against the yen

London

THE dollar eased off a seven-year peak just shy of 119 yen on Thursday ahead of data that is expected to show US consumer prices moderating as deflationary forces take hold across the globe. The euro had also hit a six-year high of 149.120 yen in early European trading, but gave up its gains after PMI surveys showed weak eurozone business growth, underpinning expectations of further monetary easing in the 18-nation bloc.

The greenback earlier romped as far as 118.98 yen, its highest since August 2007, after minutes from the Federal Reserve suggested that the United States is still likely to raise interest rates next year, in stark contrast to Japan's ultra-loose policy outlook.