August 2, 2021
Economy

Dollar rides high to U.S. labor data test

An employee counts US dollars at a bureau de change in downtown Rio de Janeiro, Brazil.

Vanderlei Almeida | AFP | Getty Images

The U.S. dollar was perched at a 15-month high on the yen and at multi-month peaks against other majors on Friday, as traders wagered strong U.S. labor data could lift it even further.

The jobs report is due at 1230 GMT and is forecast to show a solid rise of 700,000. But there is chatter about the number coming in higher and the risk that upsets the assumption that U.S. interest rates can stay at rock-bottom levels for years.

The dollar has climbed 0.7% against the yen this week and hit its highest since March 2020 on Friday, as investors have re-assessed short dollar positions following months of strong data and a hawkish shift in tone from the Federal Reserve.

The dollar rose 0.06% to 111.65 yen early in Asia, and at $1.1843 per euro it was also a whisker…

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