Dollar Rallies to Its Highest Versus Yen as Market Waits Friday’s Jobs, Factory Order Report

0
90

Dollar Rallies to Its Highest Versus Yen as Market Waits Friday’s Jobs, Factory Order ReportThe dollar advanced to its highest in two months against the Japanese yen ahead of Friday’s report that indicates the state of factory activity and job growth.

Analysts forecast that data will show favorable job growth statistics in March, pushing the Federal Reserve to increase the interest rates.

“We could over the next few months gradually move to a firmer dollar,” Jane Foley, a London-based senior foreign exchange strategist at Rabobank International. “But we need to see several sets of stronger-than-expected or just decent data in order to show us the U.S. has this cyclical advantage.”

**relatedarticle**

The dollar surged 0.1 percent to 103.71 in opening trade in New York, after earlier rising to 103.94 yen, its highest level since January 23. However, it remained slightly unchanged against the euro at $1.3788 per euro, while the yen was 142.98 per euro.

The New Zealand kiwi fell 0.8 percent to 85.66 U.S. cents, extending its losing streak which saw it slid 0.3 percent on Tuesday. It also fell against all 16 major peers after a measure of dairy products showed prices had declined.

195,000 new workers were hired in the United States in March, up from 139,000 in February, according to a survey by Bloomberg News.  Another report estimates that the Commerce Department will announce that factory orders grew 1.2 percent in February, up from January’s decline of 0.7 percent. Economists forecast that the Labor Department’s reports will show that 200,000 new jobs were created in March, up from February’s figure of 175,000.

So far, the dollar plunged 1.4 percent in the first quarter, making it the worst performing currency after the Canadian dollar of the 10 major currencies analyzed by the Bloomberg Correlation-Weighted Indexes. The yen has fallen 0.2 percent, while the euro has plunged 0.4 percent.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com