U.S. Dollar Higher on Job Market Optimism

The dollar was near the highest in almost eight weeks against major peers amid prospects jobs numbers will add to indicators of stronger economic growth, prompting the Federal Reserve to further taper stimulus at a meeting that concludes today.

The Bloomberg Dollar Spot Index gained the most in six weeks yesterday, rising above its 200-day moving average, before data today forecast to show the U.S. economy rebounded last quarter. The euro was near an eight-month low after German benchmark yields dropped to a record as the European Union and U.S. increased sanctions against Russia. Germany is forecast to report today that inflation slowed this month.

“Some of the U.S. data has been up and down, but payrolls have been consistently increasing by more than 200,000 a month, while the unemployment rate trends lower,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “The Fed will continue to taper as usual. The dollar should keep rising.”

Bloomberg

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