Dollar Advances to One-Month High as U.S. Companies Add Jobs
Dollar Advances to One-Month High as U.S. Companies Add Jobs
July 30 (Bloomberg) -- The dollar rose to a one-month high versus the euro and the yen after a private report showed
The greenback also gained as a decline in crude oil eased concern elevated fuel costs will erode consumer spending.
``It's premature to say employment destruction has hit bottom, but today is a good sign,'' said Mike Moran, a senior currency strategist at Standard Chartered in
The dollar increased 0.4 percent to $1.5524 per euro at 9:49 a.m. in
The Australian dollar declined 1 percent to 94.32 U.S. cents after a government report showed home-building approvals unexpectedly dropped in June for a second month. The Aussie decreased 0.9 percent to 102.08 yen.
Weaker Kiwi
The U.S. dollar strengthened versus the euro as ADP Employer Services reported that companies added 9,000 jobs in July after cutting a revised 77,000 positions in the previous month. The median forecast of 29 economists surveyed by Bloomberg News was for a reduction of 60,000 jobs.
Non-farm payrolls dropped by 75,000 this month following a decline of 62,000 in June, according to the median forecast in a separate Bloomberg survey. The Labor Department is scheduled to release its report Aug. 1.
Crude oil fell for a second day, declining as much as 0.8 percent to $121.25 a barrel on the New York Mercantile Exchange. It has dropped 17 percent from the record of $147.27 set on July 11. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations based on the correlation of their value changes. A reading of 1 would mean they moved in lockstep.
`Starts to Align'
``Everything starts to align for the dollar,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. ``There's optimism that we're starting to see some stabilization in the
The Dollar Index, which tracks the greenback against the currencies of six
The U.S. currency may rise further versus the yen as Japanese investors invest their summer bonuses in overseas assets offering higher yields, according to Daisaku Ueno, a senior economist and currency analyst in Tokyo at Nomura Securities Co., Japan's largest brokerage.
`Individual Money'
``Emerging markets are constantly attracting Japanese individual money,'' said Ueno.
Employees at private companies were paid summer bonuses in June and July totaling 14.8 trillion yen, according to Kazuyoshi Nakata, an economist in
HSBC Investments will seek to raise 50 billion yen for a fund focused on
The Bank of Japan's target lending rate of 0.5 percent is the lowest among industrialized economies, making overseas assets more attractive to domestic investors.
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