Early trade in New York: Dollar hits four-month high versus yen

The dollar hit a four-month high against the yen on Thursday as a rise in Treasury yields and expectations the Bank of Japan will ease monetary policy next week had investors broadly selling the Japanese currency. The greenback has gained about 2.9 percent against the yen so far in October, its strongest monthly performance since February.
Expectations that the Bank of Japan will take action on October 30 to stimulate the Japanese economy and higher US Treasury yields have made the dollar more attractive to investors. The greenback firmed against the yen, hitting a peak of 80.33 yen - its highest since June 25. That came despite reported heavy offers just above 80 yen and traders said further gains could take it toward the late-June peak of 80.59 yen. It last traded at 80.16, up 0.5 percent on the day. The euro last traded at 103.86 yen, up 0.3 percent on the day, but below a 5-1/2-month peak of 104.59 yen hit earlier this week.