The dollar traded near four-year highs against a basket of major currencies on Monday on further signs of the relative strength of the U.S. economy, while pro-democracy protests in Hong Kong hurt Asian-exposed European shares.
The dollar was broadly stronger, hitting a two-year high against the euro, a six-year peak against the yen and a 13-month high against the New Zealand dollar. Reserve Bank of New Zealand data showed the central bank intervened last month to speed its currency’s weakening.
Data on Friday showing higher U.S. growth in the second quarter fueled speculation that the Federal Reserve may raise interest rates sooner than expected, in contrast with the outlook for the European Central Bank.
A key non-farm payrolls release on Friday is expected to add to the picture of the U.S. economy steaming ahead at the end of a busy week in terms of economic data.
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