The dollar held close to a 14-month high against the euro on Thursday, as a surge in energy prices raised the risk for the Federal Reserve to act sooner to normalise policy.
The U.S. currency was steady at $1.15525 per euro after strengthening to $1.1529 on Wednesday for the first time since July of last year.
The dollar index, which measures the greenback against a basket of six rivals, was little changed at 94.252 following a nearly 0.5% climb over the past two sessions. That brought it back near the one-year high of 94.504 reached last week.
The Japanese yen, another safe haven, was mostly flat at 111.44 per dollar, near the middle of its range of the past week and a half.
The Federal Reserve, which has till now mainly contended that inflationary pressures will prove transitory, has said it is likely to begin reducing its monthly bond purchases as soon as November, before following up with interest rate increases, which could come as early as next year.
The closely watched non-farm payrolls report on Friday could provide additional clues to the timing of the Fed’s next moves. Economists expect continued improvement in the labor market, with a consensus forecast f
The dollar will also continue to benefit in its role as a safe haven, as high energy prices and worries about a slowdown in China persist through 2021, he said.
· USD/JPY consolidates in a range below mid-111.00s
Thai
Eng