Por Stanley White
TOKYO, April 2 (Reuters) – The dollar stabilized on Friday in anticipation of data from the United States, which is estimated to show an increase in job creation and a lower unemployment rate in March, while the The world’s largest economy continues to recover from the pandemic.
Sentiment towards the dollar has improved in recent weeks, while US Treasury yields have soared, as both the stimulus proposed by the Biden Administration, which exceeds $ 2 trillion, and the rapid deployment of vaccines COVID-19 have spurred economic optimism but also fear of inflation.
While trading activity is likely to be tempered by many financial markets closing due to the Easter holiday on Friday, analysts say the dollar’s rise to multi-month highs is likely to continue as more and more bets are on. investors for the economic recovery.
“It’s not just speculators who are betting on the dollar,” said Yukio Ishizuki, currency strategist at Daiwa Securities. “Asset managers are also closing their short positions in other currencies to make way for a rise in the dollar.”
“As the economy improves and Treasury yields rise, the dollar will also do so,” added the strategist.
The dollar was trading at 110.62 yen in the most recent transactions, not far from its strongest level in a year.
Against the euro, the dollar was trading at $ 1.1777, close to a five-month high.
The greenback was stable at 0.9417 Swiss francs, after losing 0.2% on Thursday.
The British pound was barely trading at $ 1.3843.
US nonfarm payrolls, due to be released on Friday, are expected to increase by 647,000 in March, up from 379,000 in February. Likewise, the unemployment rate is expected to fall to 6.0% from 6.2%.
The dollar index, a gauge of its value against the six major currencies, stood at 92,862, heading for its third consecutive week of gains.
Major currencies are not expected to move much on Friday, with financial markets closed in Australia, Singapore, Hong Kong, the United Kingdom, Europe and the United States, according to analysts.
For its part, the Australian dollar rose to $ 0.7629, after falling to a three-month low in the previous session.
Across the Tasman Sea, the New Zealand dollar was trading at $ 0.7034.
In the cryptocurrency market, bitcoin briefly surpassed $ 60,000 for the first time in two weeks, but then slashed earnings to trade 1.49% at $ 59,601.
Its rival digital currency, the ether, was up 1.39% to $ 1,994.
(Information from Stanley White; edited by Himani Sarkar and Simon Cameron-Moore; translated by Flora Gómez at the Gdansk newsroom)