(Reuters) - The dollar climbed (click here) to a fresh two-month high against the yen on Friday after Federal Reserve Vice Chair Janet Yellen lifted investor appetite for higher-risk assets by defending the U.S. central bank's current stimulus measures.
Comments widely interpreted as confirming Yellen's dovish stance and showing there would be no reduction of stimulus anytime soon dented the low-yielding yen, which typically falls when investors are looking to take on risk. She was nominated by President Barack Obama to succeed current Fed Chairman Ben Bernanke, whose term expires at the end of January. "The take away from Janet Yellen's comments (Thursday) was that a Federal Reserve led by her would leave many of the current policies in place, providing very little disruption," said Camilla Sutton, chief FX strategist at Scotiabank in Toronto. The dollar rose 0.2 percent to 100.22 yen, having touched a high of 100.43 yen earlier in the global trading day and giving it the potential to target the September 11 high of 100.60 yen. The yen fell broadly, with sterling hitting a four-year high against the Japanese currency....
