Mar 07 2014

Dollar Rises Versus Euro, Yen on Taper Bets Amid Syria Tension

“The market was relatively surprised by the strong NFP data and the dollar has benefited,” Charles St-Arnaud, a foreign-exchange strategist at Nomura Holdings Inc., said in a phone interview. “Everyone had already lowered their expectations this week. If anything, it continues to shows that the Fed should continue in the same direction and that tapering should continue.”

 

The U.S. currency rallied as the Labor Department reported non farm payrolls increased 175,000 in February, compared with the median estimate of 149,000 in a Bloomberg survey of economists. Canada’s dollar declined versus the majority of its most-traded counterparts after employers unexpectedly eliminated jobs last month. The euro reached the highest level in more than two years versus the dollar as bets on further European Central Bank stimulus waned, boosting demand for the 18-nation currency.

 

The dollar rose to a six-week high against the yen as U.S. employment gains exceeded forecasts, boosting speculation that the Federal Reserve will continue to pare monetary stimulus that’s seen as debasing the currency. The dollar gained 0.3 percent to 103.33 yen at 4:02 p.m. in New York, reaching the strongest  level since Jan. 23. The euro added 0.1 percent to $1.3872 after touching $1.3915, the highest level since Oct. 31, 2011. The shared currency gained 0.3 percent to 143.33 yen.

 

Rate Range Projection by Bank

Next week 102.30 - 103.80

Next 3 months 100.00 - 105.00