U.S. Dollar Stays High Before Services

The dollar maintained its biggest weekly advance since March against major peers before a report forecast to show growth in U.S. services held near the fastest pace in at least three years.

The greenback traded near an eight-month high versus the euro before data this week predicted to show economic growth rebounded last quarter and employers added more than 200,000 jobs for a sixth straight month. The Federal Reserve meets from tomorrow to debate the pace of interest-rate increases.

“The Fed’s reaction to the already stronger data will be interesting, but policy is absolutely dependent on the data going forward,” said Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. “The bias is for the U.S. dollar to creep higher.”  The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, was little changed at 1,013.95 as of 8:19 a.m. in Tokyo from last week, when it rose 0.5 percent, the most since the period ending March 21, and touched 1,014.39, the highest since June 18.

Bloomberg

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