Dollar strong against other currencies

The dollar is continuing to hold its own against other major currencies ahead of tomorrow’s holiday in the US and expectations that jobs data to be released on Friday will be positive. Economists are expecting 165,000 new jobs to have been created in June and the rate of unemployment to be 7.5 per cent.

The strong data will support expectations that the US Federal Reserve will begin drawing in its policy of easy money before the end of 2013. Even if the data is not as encouraging as expected, there are few who think the dollar’s rise in strength is likely to be curtailed.

The greenback was last trading up 0.1 per cent against the yen at 100.72. The dollar previously went as high as 100.86 yen, the highest it has been since hitting 101.27 yen on 31 May.

The yen is likely to remain under pressure as the Bank of Japan continues with a stringent economic policy it hopes will drive inflation towards a target of two per cent in two years. On Thursday, the European Central Bank is likely to confirm that the economy in the eurozone still needs some assistance.

The single currency was last trading down 0.1 per cent at $1.2971. This is a tad higher than Tuesday’s low of $1.2962.