Fed Speculation Leads to Solid Month for U.S. Dollar

The dollar was set to complete a monthly gain against all of its 16 major counterparts amid speculation the Federal Reserve will reduce monetary stimulus.

The greenback rose versus the yen ahead of U.S. data on first-quarter growth today. The Japanese currency climbed earlier against the euro after weekly government data showed Japanese investors cut their holdings of foreign debt by the most in more than a month. A gauge of implied volatility for Group-of-Seven currencies climbed to a three-month high.

“The dollar will be resilient,” said Daisaku Ueno, a senior foreign-exchange and fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. “The U.S. appears to be the closest to an exit strategy among major economies,” he said, referring to monetary stimulus.


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