SINGAPORE, Jan 6 ― The dollar held near an almost one-month high today, after US economic data highlighted a still-tight labour market that could keep the Federal Reserve on its aggressive rate hike path.
Against a basket of currencies, the US dollar index jumped 0.9 per cent to a nearly one-month peak of 105.27 overnight. It was last 0.03 per cent higher at 105.15, and was on track for a weekly gain of more than 1.5 per cent, the largest since September. Similarly, the euro tumbled 0.8 per cent to a more than three-week low at US$1.0515 in the previous session, and was last steady at US$1.0519.
“We could be in for an upside surprise,” said Goh. “This will keep the Fed adamant in continuing to hike rates.” “The low inflation numbers, all the surprises that we're getting, seems to be weighing on the euro,” said Ray Attrill, head of FX strategy at National Australia Bank.