Dollar Climbs on Prospects Job Gains to Back Case for Fed Taper

The dollar gained versus most of its major peers this week ahead of a U.S. report today that may show companies added enough jobs to lower the unemployment rate, boosting growth prospects for the world’s biggest economy.

The greenback traded near its strongest in more than a month against the yen, euro and pound while the Dollar Index touched a five-week high amid speculation improvement in the U.S. economy will prompt the Federal Reserve to curb stimulus. The euro and pound slid after European Central Bank President Mario Draghi and Bank of England Governor Mark Carney signaled they will keep borrowing costs at record lows.

The dollar rose 0.3 percent to 100.34 yen as of 10:29 a.m. in Tokyo after touching 100.86 on July 3, the highest since May 31. The U.S. currency gained 0.1 percent to $1.2896 per euro from yesterday, when it reached $1.2883, the strongest since May 29. The euro added 0.2 percent to 129.40 yen. The pound lost 0.2 percent to $1.5044 after earlier falling to $1.5028, the least since May 29.

The greenback is set for a 1.2 percent five-day advance against its Japanese counterpart, which would be its third-straight weekly gain. It has risen 0.9 percent versus the euro since June 28.

(Source: Bloomberg)