Dollar nears year high after pre-Fed data shock, yen slips

The dollar is moving closer to its highest level since November ahead of the Federal Reserve’s interest rate decision. This follows news of increasing signs of inflationary pressure in the US economy. The yen has also dropped to its lowest level since suspected intervention by Japanese authorities on Monday. The dollar index, which tracks the currency against major peers, is on the rise. Global markets have been relatively calm, with traders in many countries off for the May Day holiday. The US employment cost index rose higher than expected, leading investors to reconsider their bets on interest rate cuts by the Fed.