The dollar headed for weekly gains versus most of its Group of 10 peers as signs of an accelerating U.S. recovery spurred speculation the Federal Reserve will bring forward the timing of interest-rate increases.
The greenback traded near a two-week high against the yen after nonfarm payrolls rose more than economists estimated and the unemployment rate fell to an almost six-year low. The euro held a three-day decline before data forecast to show factory orders in Germany dropped. Australia’s currency was set for the sharpest weekly decline in more than a month. Expectations for currency swings plunged to a record low.
“The payrolls report confirmed that from a macroeconomic perspective the U.S. economy is growing,” said Yasuhiro Kaizaki, a vice president for global markets in New York at Sumitomo Mitsui Trust Bank. “Based on fundamentals, recent dollar buying should continue.”