US rate rise expected as confidence grows
The dollar is expected to keep rising against other currencies as economic reports point to a healthy economy and the prospect of further rate rises.
This morning the dollar stood at 1.2562 to the euro and at 1.8177 to the British pound.
The US Federal Reserve starts a two day meeting today in which it will discuss whether to increase rates for the 17th consecutive time.
The latest Conference Board report on US consumer confidence showed the index has risen to 105.7 for June, up a revised 104.7 in May.
Americans were also found to be more confident about employment prospects with those expecting an increase in job availability over next six months rising to 15.6 per cent from 14.8 per cent in last month.
"The US economy is still in tip-top shape," Tetsuhisa Hayashi, chief currency trader at Bank of Tokyo- Mitsubishi UFJ, told Bloomberg.
"I expect they are going to keep raising rates, boosting the dollar."