The US Dollar has strengthened against the Euro and the majority of its most traded peers as the currency extended the gains it made after last week’s strong jobs data.
The US currency could make movements later in the session if a speech by James Bullard the Federal Reserve Bank of St.Louis President hints whether the Federal Reserve will choose to reduce its monetary easing programme. Speculation of a scale down looks set to keep the Dollar riding high, but strategists said in the near-term the lack of clarity on when this would happen could lead to some volatility in the currency.
“Last week with elevated nerves about what Fed tapering means and when it could start, we saw this knee-jerk rush to safe heavens, like the Yen,” said Sara Yates, global head of FX strategy at JP Morgan Private Bank. “I think what we are seeing at the moment in the market is the unwinding of that.”
The confusion saw the Dollar make its worst weekly performance against the Japanese Yen since 2010. It then recovered, recouping its heavy losses after the latest non-farm payments data showed that US employers hired an extra 175,000 jobs in May, a figure that beat economist expectations.
As investors favour the Dollar emerging currencies such as the Indian Rupee (which hit a fresh record low on Monday) and the South African Rand have seen a substantial decline in their fortunes.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6439
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7563
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0608
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.6983
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0192
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5528
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3221
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9426
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9811
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7873
(Correct as of 15:30 pm GMT)
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