The US currency’s explosion to decade-plus highs against the yen kept it well supported against its other major peers. Renewed expectations for US interest rates to rise this year while Japan is seen keeping its Quantitative Easing pedal floored helped propel the greenback to December 2002 peaks against the yen. The dollar was mostly steady against the euro on expectations that Greece would continue to find ways to stay solvent over the short run. Athens hopes to secure a deal for badly needed rescue cash by the end of the month. America’s currency has been on the mend since mid-May after better news on US jobs, inflation and housing have revived expectations for the Federal Reserve to boost interest rates later this year. Against its other peers, the US currency notched three and six week highs against Sterling and the Canadian dollar, respectively. Although the greenback has fared better recently, its coming prospects will hinge on US data and what it suggests about the underlying health of the world’s biggest economy.
Euro
The euro struggled to hold above one-month lows against the resurgent greenback. The euro had caught a momentary reprieve after a senior member of the European Central Bank said that he didn’t expect the 19-country central bank to maintain negative interest rates over the long run. Markets seem to be giving Athens the benefit of the doubt that it would remain solvent over the short run. Still, until a deal on more money is finally reached between Greece and its lenders, the euro will be saddled with elevated, currency-negative uncertainty.
Sterling
Better news to share and help foster business with Sterling buyers as the UK currency nears month-end at its most affordable levels since the day after Britain’s election of May 7. As recently as mid-May the pound had strengthened to November 2014 highs, buoyed at the time by the surprisingly decisive win for Premier Cameron which took away political uncertainty that was expected to linger for much longer. It also didn’t help sterling sentiment that UK first quarter growth went an unrevised 0.3 per cent which was lighter than forecasts of 0.4 per cent.
US dollar
US jobless claims unexpectedly rose but shouldn’t deal a meaningful setback to the dollar’s resurgence as the underlying trend remained one of strength.