The dollar rose to a four-year high as Goldman Sachs Group Inc., Morgan Stanley and Bank of America Corp. forecast further strength amid bets the Federal Reserve will raise interest rates before its peers do.
The yen gained versus 31 major peers after Japan’s health minister signaled there’s no hurry on public-pension-fund changes that may boost investment in overseas assets. The greenback reached the strongest since November 2012 versus the euro before data tomorrow forecast to show U.S. economic growth quickened. New Zealand’s dollar slid to a one-year low as the nation’s central bank signaled possible intervention.
“Central-bank divergence is probably one of the keys to this dollar rally,” Lennon Sweeting, a San Francisco-based dealer at the broker and payment provider USForex Inc., said in a phone interview. “That divergence will only get greater as Europe tries to take a more accommodative stance and stimulate the economy there, while the U.S. does appear to be on an upward trajectory.”
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