U.S. Dollar Back in Favour as Payrolls Hangover Lifts

Investors were encouraged to go long on the greenback, again betting the Federal Reserve can continue to unwind its massive bond-buying stimulus over 2014. They pushed the dollar index back to the highs seen last Friday.

Against the yen, the dollar bounced to 104.56, within striking distance of a five-year peak of 105.45 yen scaled at the start of the year.

Also helping, one of the Federal Reserve’s most outspoken doves, Chicago Fed President Charles Evans, said he backed a continued wind-down of the Fed’s bond-buying program and could even see bigger cuts to the program if the economy strengthens.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.