The dollar traded 0.2 percent from a
six-week high against the euro amid signs the U.S. economic
recovery is gaining traction, adding to the case for the Federal
Reserve to scale back stimulus this month.
The Bloomberg U.S. Dollar Index was 0.2 percent from a
seven-week high before the Fed releases today its economic
outlook survey known as the Beige Book. Economists estimated
Labor Department data due Sept. 6 will show nonfarm payrolls
increased 180,000 in August. Australia’s currency rose to a two-week high after growth in the nation’s economy accelerated. The
pound was near a three-month high against the euro.
“The dollar is more likely to rise in the medium to long
term,” said Yujiro Goto, a senior currency strategist at Nomura
International Plc in London. “Should we continue to see nonfarm
payrolls increase by about 150,000 to 160,000, the likelihood of
a September tapering of Fed easing will remain intact.”
The U.S. currency was little changed at $1.3168 per euro as
of 11:24 a.m. in Tokyo from yesterday, when it touched $1.3139,
the strongest since July 22. The dollar traded at 99.50 yen from
99.57 yesterday, when it reached 99.86, the highest since Aug.
2. The yen added 0.1 percent to 131.03 per euro.
The Bloomberg U.S. Dollar Index, which tracks the greenback
against 10 other major currencies, was little changed at
1,036.50 from yesterday, when it advanced to as high as
1,038.61, a level unseen since July 16.
The Aussie dollar jumped to 90.97 U.S. cents, the highest
since Aug. 20, before trading at 90.95, 0.4 percent above
yesterday’s close. Sterling was at 84.61 pence per euro from
84.65 yesterday, when it touched 84.46, the strongest level
since May 21.
Japan Quake
The yen briefly gained as domestic stocks fell after an
earthquake shook buildings in Tokyo.
The quake struck the ocean in the Izu Islands region, about
640 kilometers (397 miles) south of Tokyo, at 9:18 a.m. local
time, the U.S. Geological Survey said on its website. The
magnitude was 6.9, national broadcaster NHK reported. The Topix
index of shares fell 0.5 percent, snapping a two-day gain.
“The yen tends to strengthen when there are earthquakes,
because of the sharp appreciation we saw in the 2011 tremor,”
said Kumiko Gervaise, an analyst at Gaitame.com Research
Institute Ltd. in Tokyo. “The moves in the currency were
limited given the size of the quake wasn’t that big.”
The Bank of Japan will probably keep policy on hold at a
two-day meeting starting today in Tokyo, according to the
forecast of all 32 economists surveyed by Bloomberg News.
Fed Tapering
Fed policy makers are debating whether the economy is
strong enough to allow them to pare monthly purchases of $85
billion in Treasuries and mortgage debt, which tend to debase
the dollar. Officials will reduce the amount at their next
meeting on Sept. 17-18, according to 65 percent of economists in
an Aug. 9-13 Bloomberg poll.
The ADP Research Institute will probably say tomorrow
payrolls increased by 180,000 last month, following a 200,000
gain in July, the most since December, according to the median
estimate of economists surveyed by Bloomberg. Nonfarm payrolls
rose 180,000 in August, and the jobless rate held at 7.4
percent, economists in separate polls forecast before the Labor
Department figures on Sept. 6.
The Institute for Supply Management’s manufacturing index
increased to 55.7 last month, the highest since June 2011, the
Tempe, Arizona-based group reported yesterday.
In Australia, second-quarter gross domestic product
advanced 0.6 percent from the previous three-month period, when
it rose a revised 0.5 percent, a Bureau Statistics report
released in Sydney today showed.
The pound climbed to a three-month high against the euro
yesterday as Markit Economics and the Chartered Institute of
Purchasing and Supply said a gauge of U.K. construction
increased in August. The Bank of England and the European
Central Bank will announce interest rate decisions tomorrow.
To contact the reporters on this story:
Mariko Ishikawa in Tokyo at
mishikawa9@bloomberg.net;
Masaki Kondo in Singapore at
mkondo3@bloomberg.net
To contact the editor responsible for this story:
Rocky Swift at
rswift5@bloomberg.net
Source Article from http://www.bloomberg.com/news/2013-09-03/dollar-trades-near-6-week-high-versus-euro-on-fed-tapering-bets.html
