Dollar Trades Near 6-Week High Versus Euro on Fed Tapering Bets

The dollar traded 0.2 percent from a six-week high against the euro amid signs the U.S. economic recovery is gaining traction, adding to the case for the Federal Reserve to scale back stimulus this month.

The Bloomberg U.S. Dollar Index was 0.2 percent from a seven-week high before the Fed releases today its economic outlook survey known as the Beige Book. Economists estimated Labor Department data due Sept. 6 will show nonfarm payrolls increased 180,000 in August. The yen briefly gained as domestic stocks fell after an earthquake shook buildings in Tokyo. The pound was near a three-month high against the euro.

The U.S. currency was little changed at $1.3168 per euro as of 10:22 a.m. in Tokyo from yesterday, when it touched $1.3139, the strongest since July 22. The dollar traded at 99.58 yen from 99.57 yesterday, when it reached 99.86, the highest since Aug. 2. The yen bought 131.12 per euro from 131.14 yesterday, after earlier gaining 0.1 percent.

The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 other major currencies, was little changed at 1,036.98 from yesterday, when it advanced to as high as 1,038.61, a level unseen since July 16.

Sterling was at 84.61 pence per euro from 84.65 yesterday, when it touched 84.46, the strongest level since May 21.

(Source: Bloomberg)