Dollar Rallies Most in a Month on U.S. Jobs Growth By Andrea Wong Jul 4, 2014 The dollar strengthened the most in a month as nonfarm-payrolls gains that exceeded estimates boosted speculation the Federal Reserve may bring forward the timing of interest-rate increases. The U.S. currency rose to a two-week high versus the yen as the prospect of higher borrowing costs set the U.S. apart from other nations that are adding to currency-debasing stimulus measures to boost growth. The krona plunged after a larger-than-forecast cut in Swedish interest rates, while Australia’s dollar tumbled as the Reserve Bank governor said it was “overvalued.” The euro fell after European Central Bank President Mario Draghi reiterated that he’ll keep rates low. “The NFP, ECB meeting and Riksbank -- all of that lends to the same strong-dollar story,” Fabian Eliasson in foreign-exchange sales at Mizuho Financial Group Inc. in New York said in a telephone interview. “You still need to see more consistent data points to support a stronger dollar in the long run.”The greenback strengthened 0.4 percent to 102.19 yen and touched 102.27, the strongest since June 18. Europe’s 18-nation shared currency declined 0.4 percent to $1.3610 and was little changed at 139.09 yen.
Posted on: Fri, 04 Jul 2014 11:08:38 +0000
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