* Dollar near 2-month high vs yen
* Stronger U.S. inflation keeps Fed tapering expectations intact
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
The dollar held near a two-month high against the yen on Monday after a key measure of U.S. inflation showed stronger price gains than expected, keeping alive expectations of an eventual tapering in the Federal Reserve’s asset buying.
The dollar traded at 109.87 yen, having reached a 110.20 on Friday, coming within striking distance of the one-year peak of 110.97 marked at the end of March.
The U.S. inflation data also drove the greenback higher against other currencies briefly as well, though the currency run out of steam ahead of a long weekend in New York and London.
The euro changed hands at $1.2194, off Friday’s low of $1.2133, while the British pound stood little changed at $1.4189.
U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992, due to a recovery from the pandemic and various supply disruptions.
