Tags: Currency | dollar | higher | Fed

Currency Experts: Dollar Headed Higher Still

By    |   Friday, 03 October 2014 01:33 PM

The dollar has soared for 12 straight weeks, reaching a six-year high against the yen and a two-year high against the euro.

And many experts in the currency market expect the greenback to rise further.

It has benefited from the strength of the U.S. economy, compared with weakness overseas. U.S. GDP expanded 4.2 percent in the second quarter, while the eurozone registered zero growth, and Japan's economy shrank 7.1 percent.

Market participants are focusing on when the Federal Reserve will begin raising interest rates — many economists think it will be mid-2015 — while the European Central Bank and the Bank of Japan intensify their easing.

"We have been dollar bulls since the start of the year, but the Fed's increasing confidence with better data, alongside a weaker tone to European and Japanese data driving policy divergence have made us more confident in those views," David Woo, Bank of America's chief currency strategist, wrote in a commentary obtained by CNBC.

The dollar rose Friday after a stronger-than-expected U.S. jobs report for September. Non-farm payrolls rose 248,000 and the unemployment rate fell to a six-year low of 5.9 percent.

"The whole flavor of the report is very positive. Frankly I'm surprised dollar hasn't rallied more," Greg Anderson, head of foreign exchange strategy at Bank of Montreal, told Bloomberg.

"The doves [on Fed policy] will be really clutching at straws to find something they don't like" in the data.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Finance
The dollar has soared for 12 straight weeks, reaching a six-year high against the yen and a two-year high against the euro.
Currency, dollar, higher, Fed
237
2014-33-03
Friday, 03 October 2014 01:33 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved