A gauge of the dollar approached a 10-year high on speculation the U.S. is moving toward raising interest rates as policy makers in Europe and Japan meet to discuss further measures to bolster their stagnant economies.
New Zealand’s dollar traded near a more than two-year low after consumer prices fell. The U.S. currency held a three-day gain versus the yen as the Bank of Japan considers expanding monetary easing at a policy meeting ending today. The euro was at almost the lowest level in 11 years before the European Central Bank decides tomorrow whether to buy sovereign bonds under quantitative easing. The Swiss franc gained.
“There is a whole bunch of local fundamentals that are augmenting what looks like a broad U.S. dollar rally,” said Sam Tuck, a senior currency strategist in Auckland at ANZ Bank New Zealand Ltd. “The New Zealand dollar has been falling in anticipation of inflation being weak.”
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