A gauge of the dollar was poised for its biggest weekly gain in more than 16 months before a U.S. government report today forecast to show October payrolls expanded by more than this year’s average.
The Bloomberg Dollar Spot Index climbed to a 5 1/2-year high. The U.S. currency remained above 115 yen for a second day, trading 0.3 percent from a seven-year peak after Bank of Japan Governor Haruhiko Kuroda said this week the central bank will continue easing as long as needed to achieve stable 2 percent inflation. The euro held near a two-year low after European Central Bank President Mario Draghi deepened his commitment to stimulus yesterday. Australia’s currency was set for its first weekly drop in five weeks.
“Should we see a positive payrolls report in line with our forecast, the dollar should rise,” said Takeru Kurokawa, an analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “We could see dollar climb toward 117 yen.”