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Dollar strengthens on interest rate speculation
The dollar has been strengthening against the euro and the yen following the release of positive manufacturing and services results which may deter the Federal Reserve from cutting interest rates.
America's currency rose to $1.3536 against the euro, marking its strongest point since April 17th. Against the yen the currency increased to 120.31, earlier reaching its highest point since the end of February at 120.47 yen.
The country's Institute for Supply Management' index was seen to show services growing at their fastest pace in three months during April, with manufacturing also strengthening to an almost year high, Bloomberg reports.
Tony Morriss, a currency strategist at Australia & New Zealand Banking Group, told the news source: "The data don't support the idea the economy is falling into a hole, pricing out the possibility of the Fed cutting rates. The yield differential has moved in the dollar's favour."
Meanwhile, in the eurozone, the March Producer Prices Index show a 0.3 per cent month-on-month read, which could lead to rising consumer prices and the maintenance of a hawkish sentiment for the area, FX Japan suggests.
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