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Dollar broadly stronger on U.S. recovery hopes

Published 03/12/2013, 05:29 AM
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Investing.com - The dollar was higher against the euro and the pound on Tuesday boosted by optimism over the improving U.S. economic recovery, and eased against the yen after hitting fresh three-and-a-half year highs earlier in the session.

During European morning trade, the dollar was lower against the yen, with USD/JPY slipping 0.17% to 96.12, down from a session high of 96.72, the pair’s highest level since August 2009.

The yen fell to fresh lows against the dollar earlier after reports in the Japanese media suggested that Bank of Japan governor nominee Haruhiko Kuroda could begin to implement fresh monetary easing steps after he takes office next week and may not wait for the bank’s next policy meeting in early April.

On Monday, Kuroda said he would do “whatever is needed” to beat deflation and achieve the government’s 2.0% inflation target. The comments came during a second parliamentary confirmation hearing in Japan’s upper house.

Meanwhile, Tuesday’s minutes of the BoJ’s February meeting showed that some policymakers said bond purchases could be considered as an option for further monetary easing.

The dollar was trading close to three-month highs against the euro, with EUR/USD down 0.28% to 1.3008.

The dollar remained stronger after data on Friday showed that the U.S. economy added significantly more jobs than forecast in February, with the unemployment rate falling to a four-year low of 7.7%.

The single currency remained under pressure amid concerns over the economic outlook for the euro zone, while worries over ongoing political uncertainty in Italy also weighed.

The dollar was close to two-and-a-half year highs against the pound, with GBP/USD dipping 0.06% to 1.4907 amid concerns over prospects for a triple-dip recession in the U.K. and more easing by the Bank of England.

The greenback edged higher against the Swiss franc with USD/CHF easing up 0.10% to 0.9482.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.17% to 1.0275, AUD/USD climbing 0.18% to 1.0297 and NZD/USD down 0.39% to 0.8248.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 82.98.




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