USD Headed for Best Week in 3 Months
The US Dollar is headed for its best weekly gain in three months on Friday, boosted by confidence that the US economic recovery is well underway.
"The U.S. economy is exceptionally strong relative to other countries, causing dollar short covering”, said Tohru Sasaki - J.P. Morgan's head of Japan market research in Tokyo. According to him, current dollar strength could continue for "several weeks”, but as Europe and Asia catch up with vaccinations and the Federal Reserve's ultra-easy monetary policy caps a rise in long-term US yields - the longer-term future is unclear.
For now, the Dollar Index has reached a new two-month high in Asian trade amid signs of resilience in the labour market, touching slightly higher to 91.576 from Thursday, with nonfarm payroll figures due later in the day. The greenback has also renewed its highs against the euro and yen - at 105.55 yen on Friday after earlier edging as high as 105.70 for the first time since the 20th of October.
The euro was mostly flat at $1.1966 after dipping to $1.1952 for the first time since the 1st of December.
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