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The dollar extended its rally against the Japanese yen on Wednesday, hitting the highest level since March 21, after a round of upbeat US economic data.

The buck was recently up by 0.37 per cent to ¥112.4, rising for the fifth session in a row.

Investors have bid-up the greenback as concerns have faded over a potential government shutdown, and as hopes have again risen that the Trump administration will be able to pass tax reform measures despite the failed healthcare vote.

The dollar’s gains accelerated on Wednesday after data on private sector payrolls essentially matched Wall Street expectations, and a reading on the vast services sector easily topped forecasts.

The yen, which tends to rise during times of greater global uncertainty, has also faced selling pressure after Emmanuel Macron, a centrist, had a strong showing the first round of the French election, halting fears that a second round would host a face-off between two candidates on extreme ends of the spectrum.

Copyright The Financial Times Limited 2017. All rights reserved.
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