Dollar hit a new three-month peak against majors on Friday
The dollar reached a new three-month peak against the other major currencies on Friday. The currency was perched at a 15-month high against the Japanese yen. Remarkably, traders bet strong U.S.labour data could raise it even further.
The U.S. dollar index, which tracks the dollar against a basket of six major currencies, is on track for a further weekly increase of approximately 1%. It boosted by 0.1% on the day, touching 92.699.
The dollar has rallied broadly since the U.S. Fed surprised markets last month. Federal Reserve signaled in the previous week that it could tighten policy sooner than anticipated to curb inflation.
Additionally, the dollar has been supported over the last couple of days by strong U.S. employment data. That made people think that U.S. interest rates can remain at ultra-low levels for years.
According to the data published on Thursday, applications for U.S. state unemployment insurance dropped more than anticipated. Meanwhile, initial jobless claims declined by 51,000 to 365,4000, hitting a new pandemic low as the economy reopens.
the U.S. jobs report is due on Friday, expected to show an increase of 700,000
Furthermore, the U.S. jobs report is due at 1230 GMT. It is forecast to show a solid increase of 700,000 in June, a rise from the 559,000 jobs added in May.
The dollar index now is up 3.4% from its May lows as shorts have cut their positions. Some analysts say that move leaves it vulnerable if the jobs figures miss lofty expectations.
Meanwhile, the U.S. dollar boosted by 0.1% and traded at 111.57 against the Japanese yen, close to a 15-month high. The euro against the greenback dropped to 1.1846, near a three-month low.
The British pound surged 0.1% against the dollar and traded at 1.3771. It was traded close to a new 2-1/2-month low.
Risk-sensitive currency, the Australian dollar, was flat at 0.7469, not far from the lowest level unseen since December.
Bitcoin fell $1,810.87, while Ethereum dipped $165.81
In cryptocurrencies, the most popular cryptocurrency, Bitcoin, declined by 5.17% overnight and traded at $33,226. Remarkably, it traded $1,810.87 higher in the previous session. The cryptocurrency is down 48.8% from the year’s peak of $64,895.22 reached on April 14.
Ether, the second-largest cryptocurrency, linked to the ethereum blockchain network, also witnessed a decline. The cryptocurrency fell by 7.28% and touched $2,110.53. Ethereum traded $165.81 higher in the previous session.