Dollar Rises to Six-Month High as Tapering Weighed Amid Recovery
The Bloomberg U.S. Dollar Index headed for its highest closing level in more than two months after a report yesterday showed manufacturing unexpectedly accelerated in November at the fastest pace since April 2011. A private survey tomorrow may show employers in the U.S. boosted jobs last month by the most since June. Australia’s dollar reached a five-year low versus its New Zealand counterpart as the larger nation’s Reserve Bank said a weaker currency was needed for balanced growth.
“U.S. data is going to keep driving the direction of the dollar,” said Yuji Kameoka, chief currency strategist in Tokyo at Daiwa Securities Co., “Yesterday’s numbers have boosted the view that tapering could happen in December.”
The dollar gained 0.2 percent to 103.12 yen at 8:18 a.m. London time after earlier touching 103.38, the highest level since May 23. It was at $1.3554 per euro. The shared currency climbed 0.3 percent to 139.76 yen, after reaching 139.94, the highest since October 2008.
The Bloomberg U.S. Dollar Index, which tracks the currency against 10 major counterparts, was at 1,023.78, set for the highest close since Sept. 12. Currency volatility increased for a second day, with the JPMorgan Chase & Co. Group of Seven Volatility Index climbing to as high as 8.38 percent, the most since Oct. 11.