The dollar headed for a seventh weekly gain, after rising above 120 yen yesterday for the first time since July 2007, as economists predicted U.S. job growth quickened while Japan is in recession and Europe struggles.
The U.S. currency has risen at least 3.8 percent versus all its 16 major peers in the past three months amid speculation the Federal Reserve will boost interest rates next year. The euro rose from a two-year low yesterday after European Central Bank President Mario Draghi said policy makers will wait to assess whether extra stimulus is needed. Corporate bankruptcies in Japan related to the weak yen increased last month to the most since at least January 2013, Teikoku Databank Ltd. said.
“If the payrolls number is good, dollar-yen will rise, but we’re getting pretty close to the end of this rally,” said Kazuo Shirai, a trader at MUFG Union Bank NA in Los Angeles. “The move has been very fast, without a major correction lower. I don’t think we’ll get to 125 anytime soon.”