USD/JPY up to 119.95 on U.S. Growth

The dollar strengthened to within 0.1 percent of 120 yen, the highest since July 2007, as analysts forecast that U.S. job growth will accelerate while Japan remains in recession.

A gauge of the U.S. currency headed for its highest close in more than five years. The euro was near a two-year low set yesterday amid speculation European Central Bank policy makers meeting today will signal additional stimulus. Australia’s dollar slid for a sixth day after Goldman Sachs Group Inc. forecast it would decline to 79 U.S. cents.

“It’s still the divergent-growth, divergent-policy story,” said Robert Sinche, a global strategist at Amherst Pierpont Securities LLC in Stamford, Connecticut. “We are seeing capital flows out of Japan, and I think that helps bring capital out and continues this movement down in the yen.”

Bloomberg

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