U.S. Dollar near 7 Week High

The dollar rose to an almost seven-week high after a gauge of service industries climbed more than forecast in October, adding to the case for the Federal Reserve to taper monthly bond purchases.

The euro dropped against the yen after European Central Bank Executive Board member Joerg Asmussen said the economic recovery is “still very green” before the bank’s policy meeting this week. Japan’s currency appreciated versus most of its 16 most-traded counterparts as the Bank of Japan’s governor said efforts to dispel the country’s deflation are succeeding. Brazil’s real fell against all major peers.

The dollar rally “continued with fairly decent readings on the Institute for Supply Management” non-manufacturing index, Fabian Eliasson, head of U.S. currency sales in New York at Mizuho Financial Group Inc. (8411), said in a phone interview. “Overall, the market turned a little bit dollar positive.”

Bloomberg

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