USD/JPY Sits Below 105 as Job Gains Boost Fed Bets

The dollar traded 0.5 percent from the strongest level in almost eight months against the yen before data forecast to show a pickup in U.S. employment, supporting bets the Federal Reserve will raise interest rates.

A gauge of the greenback against major peers was near a seven-month high as analysts predict a report today will show a continued expansion in service industries. The euro traded 0.3 percent from the weakest in a year before the European Central Bank meets today. Bank of Japan officials will also conclude a gathering today. Russia’s ruble rose yesterday after President Vladimir Putin agreed with his Ukrainian counterpart on steps toward a cease-fire in eastern Ukraine.

“U.S. economic data has been good, and the Fed’s shift from ending quantitative easing to tightening is becoming more certain,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “As the Fed’s rate hike comes in sight, the dollar will strengthen.”

Bloomberg

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