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Dollar Has Biggest Gain in a Year Against Euro on Jobs Outlook
March 2 (Bloomberg) -- The dollar had its biggest rally against the euro in a year, and surged to a four-month high against the yen, on speculation employment growth in the world's largest economy is accelerating.
Federal Reserve officials have indicated they will wait for the economy to create more jobs before raising their target interest rate from 1 percent. Higher U.S. yields may draw foreign investors. A manufacturing report yesterday showed factory employment at the highest since 1987.
Strength in employment ``would move the Fed forward,'' said David Durrant, New York-based chief currency strategist for Bank Julius Baer & Co, with about $76 billion in assets. ``That will at some point start attracting investor money,'' which ``will lead to a stronger dollar.''
Against the euro, the dollar gained about 2 percent to $1.2211 at 1:08 p.m. in New York, its strongest value since mid- December, from $1.2457 yesterday, according to EBS prices. The gain is the most since March 13, 2003 and earlier the dollar touched $1.2197. Since touching a record low of $1.2930 on Feb. 18, the dollar has recovered almost 6 percent. The dollar rose to 110.11 yen from 109, reaching its highest since Nov. 7.
Dollar gains accelerated as it broke through levels that triggered pre-set orders to buy the currency, such as between $1.2350 and $1.2330 per euro, traders said.
Index Breakpoint (and the story continues on Bloomberg) |
