The
dollar strengthened to within 0.1 percent of 120 yen, reaching the
highest level since July 2007, as analysts forecast that U.S. job growth
will accelerate, boosting the economy while Japan™s remains mired in
recession.
While
the U.S. currency is being buoyed by signs of strength in the American
economy, the yen and the euro are weakening as their central banks
expand stimulus measures to boost growth. Europe™s shared currency
touched a two-year low today as traders awaited a monetary-policy
decision from the European Central Bank. Australia™s dollar slid for a
sixth day after Goldman Sachs Group Inc. forecast it would decline to 79
U.S. cents.
The
dollar rose 0.1 percent to 119.93 yen at 12:10 p.m. London time, after
rising to 119.98, the strongest level since July 2007. The U.S. currency
was little changed at $1.2313 per euro after appreciating to $1.2296,
the strongest since August 2012. The yen traded at 147.66 per euro.
About
$3 billion in options contracts with strikes at 120 yen per dollar
expire today, according to data compiled by Bloomberg, potentially
limiting the decline of the Japanese currency. The greenback appreciated
14 percent against the yen this year as the Fed moved closer to raising
interest rates while the Bank of Japan increased the scale of its bond
purchases as recently as October.
Source : Bloomberg
