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Strong Dollar Strides Towards U.S. Jobs Test

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SINGAPORE Reuters The U.S. dollar was perched at a 15month high on the yen and at multimonth peaks against other majors on Friday, as traders wagered strong U.S. labour data could lift it even further.

The jobs report is due at 1230 GMT and is forecast to show a solid rise of 700,000. But there is chatter about the number being even higher and of that upsetting an assumption that U.S. interest rates can stay at rockbottom levels for years.

The dollar has started July strongly; a U.S. nonfarm payrolls meet or beat today would maintain that momentum, DBS Bank strategist Philip Wee said in a note to clients.

The dollar has climbed 0.7 against the yen this week and hit its highest since March 2020 in the Asia session, as investors have reassessed short positions following months of strong data and a shift in tone from the Federal Reserve.

The greenback edged up to 111.65 yen early in the Asia session, and at 1.1841 per euro was only a whisker short of Thursdays threemonth high.

It crept to a fresh twoandahalf month peak of 1.3752 per British pound and sat near its highest since December against the Australian dollar at 0.7461.

That puts the dollar index at 92.564 and some 3.4 above a fourmonth low it hit in May. The Aussie, the kiwi, the euro and the yen are also all below their 200day moving averages against the dollar with the yen miles below it after having lost nearly 7.5 this year.

Many people are now arguing over whether the dollar has indeed bottomed,…

USD Up, JPY Down as US Data shows Strong Labor Market; NFP

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