BLBG:Dollar Approaches 3 1/2-Year High on U.S. Growth Pickup
The dollar approached the strongest since August 2009 versus the yen as signs of a strengthening recovery in the world’s biggest economy boosted demand for the U.S. currency.
The Dollar Index (DXY) traded near its highest level in seven months before a report in two days that economists said will show retail sales improved, after the Labor Department said last week that payrolls rose and the jobless rate declined. The yen was 0.8 percent from a three-week low against the euro after Japanese machine orders fell more than economists forecasts and Haruhiko Kuroda, the nominee for central bank governor, said current monetary easing efforts aren’t enough to beat deflation.
“The U.S. economy is doing OK and I think it’s going to have a reasonable 2013,” said Thomas Averill, managing director in Sydney at Rochford Capital, a currency and interest-rate risk management company. “You’re going to see the value of the greenback very sensitive to movements in unemployment data.”
The dollar rose 0.1 percent to 96.05 yen at 7:55 a.m. in London after climbing to 96.55 on March 8, the highest since Aug. 11, 2009. The U.S. currency was little changed at $1.3006 per euro. The yen dropped 0.1 percent to 124.94 per euro after sliding to 125.92 on March 8, the weakest since Feb. 14.
Retail Sales
U.S. retail sales rose 0.5 percent last month after a 0.1 percent gain in January, according to the median estimate of economists surveyed by Bloomberg News before the Commerce Department report on March 13. American employers added 236,000 jobs in February, pushing down the jobless rate to a four-year low of 7.7 percent, the Labor Department said March 8.
The Dollar Index, which Intercontinental Exchange Inc. uses to track the greenback against the currencies of six major U.S. trade partners, was little changed at 82.687 after rising to 82.924 on March 8, the highest since Aug. 3.
The dollar has gained 3.2 percent this year, while the euro appreciated 1.6 percent, according to Bloomberg Correlation- Weighted Indexes that track 10 developed-nation currencies. The yen tumbled 7.8 percent, the worst performer.
Japan’s Cabinet Office said machine orders fell 13.1 percent in January, exceeding the median forecast in a Bloomberg survey for a 1.7 percent drop.
To contact the reporters on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
