Dollar Strengthens Ahead of Jobs Data

10 Jan 2025 , 09:23 AM

On Friday, increasing bond rates and anticipation of another solid batch of U.S. jobs data appeared to support the dollar’s potential to continue its longest weekly winning run in more than a year.

This week, the dollar gained 0.5% against the yen to purchase 158.03 yen and climbed more than 1% against the British pound, which was at a 14-month low due to a selloff in gilts and worries over the country’s financial situation.

The dollar has seen modest increases against the Australian and New Zealand dollars and is expected to have a generally stable week against the euro, which is worth $1.0926.

The dollar index is expected to rise for the sixth week in a row, the longest since an 11-week run in 2023, as the US economy appears to be doing well despite global economic difficulties.

On Friday morning in Asia, the index remained stable, rising 0.25% on a weekly basis to 109.18.

After hitting a 14-month low of $1.2239 earlier in the week, sterling was last slightly lower at $1.2295. Both the Australian and New Zealand dollars are hovering at multi-year lows; the Aussie, which is currently trading at $0.6190, is just shy of breaking a 2022 low of $0.6170.

The New Zealand dollar, which was last at $0.5594, is also testing its 2022 bottom of $0.5512.

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