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FOREX-U.S. dollar hits one-year high vs yen, index on track for best quarter since June 2018

Published 01/04/2021, 02:31 am
Updated 01/04/2021, 02:36 am
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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DX
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ADP
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US10YT=X
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BTC/USD
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PYPL
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* Dollar marks fresh 1-year high vs yen

* Euro hits 5-month low vs dollar

* ADP (NASDAQ:ADP) data shows increased hiring for February

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (New throughout, updates prices, market activity and comments, adds FX table)

By Gertrude Chavez-Dreyfuss

NEW YORK, March 31 (Reuters) - The dollar rose on Wednesday, hitting a one-year high versus the yen and multi-month peaks with other currencies as investors bet fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.

The dollar index, a gauge of its value against six major currencies, however fell 0.1% to 93.124 =USD . But it was on track to post its biggest quarterly gain since June 2018, up around 3.5%.

The index rose as far as 93.439, the highest in almost five months. It has climbed from close to 90 at the start of March, on course for its best month since July 2019.

The greenback held its gains following data showing the U.S. economy added more than 500,000 private sector jobs in February.

U.S. private payrolls increased by 517,000 jobs last month, the ADP National Employment Report showed on Wednesday, slightly lower than market forecasts. Data for February was revised up to show 176,000 jobs added instead of the initially reported 117,000. ADP isn't a reliable gauge of how nonfarm payrolls might fare, it paints an improving picture of the labor market," said Joe Manimbo, senior market analyst at Western Union Business Solutions, in a research note.

Wall Street economists are forecasting U.S. non-farm payrolls, due on Friday, of 647,000.

"Given markets' lofty expectations for March hiring, seen up by 650,000, the dollar could fall prey to the buy the rumor of good news and sell on the fact," he added.

The dollar set a one-year top of 110.97 yen JPY=EBS and was last up 0.2% at 110.535 yen. For the quarter, the dollar posted gains of about 7%, on pace for its best performance since December 2016.

The euro, meanwhile, fell to a five month low versus the dollar at $1.1704, but was last up 0.2% at $1.1735 EUR=EBS . On the quarter, the euro was on track for its weakest showing since September 2019.

The dollar has been supported overall by a surge in U.S. bond yields, which make the currency more attractive as an investment.

The yield on the benchmark 10-year Treasury note US10YT=RR jumped to a one-year high of 1.776% on Tuesday.

"With U.S. Treasuries meaningfully under pressure yesterday, the environment is clearly supportive for the U.S. dollar, particularly as Europe continues to battle with a third Covid wave," said ING's global head of markets, Chris Turner, in a note to clients.

Also later on Wednesday, U.S. President Joe Biden is set to outline how he intends to pay for a $3 trillion to $4 trillion infrastructure plan, after earlier this week saying 90% of adult Americans would be eligible for vaccination by April 19. the cryptocurrency market, bitcoin briefly topped $59,000, trying to close the distance to the record peak at $61,781.83 set earlier this month. It was last up 0.8% at $59,243 BTC=BTSP .

PayPal Holdings PYPL.O said Tuesday it launched a "Checkout with Crypto" service, which will allow U.S. users to use their cryptocurrency holdings to pay online merchants worldwide, adding to the growing global acceptance of the digital tokens on both Wall Street and Main Street.

========================================================

Currency bid prices at 11:22AM (1522 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

93.1260

93.2350

-0.10%

3.495%

+93.4390

+92.9820 Euro/Dollar

EUR=EBS

$1.1737

$1.1716

+0.18%

-3.94%

+$1.1760

+$1.1704 Dollar/Yen

JPY=EBS

110.5400

110.3500

+0.18%

+6.99%

+110.9600 +110.2800 Euro/Yen

EURJPY=

129.72

129.28

+0.34%

+2.21%

+130.0400 +129.2600 Dollar/Swiss

CHF=EBS

0.9422

0.9419

+0.05%

+6.52%

+0.9447

+0.9404 Sterling/Dollar GBP=D3

$1.3778

$1.3742

+0.27%

+0.86%

+$1.3809

+$1.3717 Dollar/Canadian CAD=D3

1.2575

1.2629

-0.41%

-1.23%

+1.2629

+1.2540 Aussie/Dollar

AUD=D3

$0.7609

$0.7597

+0.16%

-1.09%

+$0.7636

+$0.7589 Euro/Swiss

EURCHF=

1.1056

1.1036

+0.18%

+2.30%

+1.1074

+1.1037 Euro/Sterling

EURGBP=

0.8518

0.8524

-0.07%

-4.71%

+0.8538

+0.8506 NZ

NZD=D3

$0.6991

$0.6983

+0.11%

-2.65%

+$0.7025

+$0.6965 Dollar/Dollar

Dollar/Norway

NOK=D3

8.5390

8.5470

-0.11%

-0.57%

+8.5630

+8.5055 Euro/Norway

EURNOK=

10.0210

10.0240

-0.03%

-4.26%

+10.0340

+9.9809 Dollar/Sweden

SEK=

8.7192

8.7350

+0.00%

+6.38%

+8.7518

+8.7073 Euro/Sweden

EURSEK=

10.2351

10.2354

+0.00%

+1.58%

+10.2513

+10.2217

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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