USD/JPY climbs above 120 yen for first time since 2016

Dollar rose against yen to February 2016 highs amid a lack of data from Japan today and ahead of some US data and speeches by Fed members.

As of 05:59 GMT, USD/JPY rose 0.72% to 120.33, with a six-year highs at 120.46.

From the US, the Richmond manufacturing index is expected up to 2 from 1 in February.

Federal Reserve Bank of New York President John Williams is due to participate in a virtual panel discussion about the evolving role of private digital currencies at the Bank for International Settlements Innovation Summit.

Yesterday, Fed Chair Jerome Powell said he expects a 25 basis points interest rate hike at each Fed meeting if needed to arrest the inflation, which is already spiking way too high.

Powell also expects  the Fed to cut down its general budget over the next 3 years, and on the Ukraine crisis, he views it simply as a supply disruption shock, and he doesn't expect a deep impact on the US economy in the long term.

For the time being, Powell believes in moving fast to control inflation, and develop a less accommodating monetary policy, while maintaining some support for the labor sector.