The world's reserve currency was driving toward weekly gains against all of its top rivals on Friday amid the likelihood of the U.S. releasing economic data noting employment figures climbed last month, Bloomberg reports.
Analysts and economists polled by the media outlet project July was a strong month as far as job creation was concerned in the nation hosting the globe's largest economy. The dollar index, which measures the strength of the currency against competing monetary units, was pushing toward its first climb in about one month.
"The risk for the U.S. jobs number is to the upside," European head of global-markets research Derek Halpenny with Bank of Tokyo-Mitsubishi UFJ Ltd. in London told the news source on Friday. "The barrier is a little bit higher for the dollar to gain. It might take a payroll reading north of 250,000 to see the dollar appreciate notably. We are certainly now more confident in our view that the US economy is strengthening."
The dollar's gains are linked with confidence that the monetary stimulus program implemented by the U.S. Federal Reserve will taper as the economy continues strengthening.
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