NEW YORK, June 1 — The dollar held its first two-week gain since March before as investors looked to a US jobs report for further evidence the economy is strong enough for the Federal Reserve to raise interest rates this year.
A gauge of the currency traded near a six-week high against its peers after data showed hedge funds and other speculators strengthening their backing for a dollar rally.
The greenback gained against the euro as Greece struggled to seal an accord with its creditor. The Reserve Bank of Australia will set monetary policy Tuesday.
“While the dollar may fluctuate this week before Friday’s nonfarm payrolls, its undercurrent remains solid,” Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd, a margin-trading services provider, wrote in a note to clients.
“The dollar may get a boost if RBA revives a reference to the potential need for further easing in its statement.”
The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major trading partners, was little changed at 1,193.36 as of 8:47 a.m. in Tokyo, after reaching 1,197.76 on May 28, the highest level since April 15.
The dollar was at 124.22 yen from 124.15 on May 29. It touched 124.46 on May 28, the highest since December 2002. The greenback rose 0.3 per cent against the euro at US$1.0954 (RM4).
Data on June 5 will show US payrolls increased by 225,000 in May after gaining by 223,000 in April, according to the median estimate of 70 analysts surveyed by Bloomberg.
The difference in the number of bets on a rise in the dollar compared with those on a loss against eight of the greenback’s major peers increased by 48,829 contracts in the week ended May 26, according to Commodity Futures Trading Commission data compiled by Bloomberg.
The Aussie fell 0.1 per cent at 76.39 US cents, after touching a six-week low of 76.18 on May 28.
RBA Governor Glenn Stevens and his board will keep the cash rate at a record-low 2 per cent at tomorrow’s meeting in Sydney, markets and economists predict. — Bloomberg
