U.S. Dollar Elevates To Four-Month High
On Tuesday, the U.S. dollar hit a four-month high against the yen. The dollar began to increase immediately following a rise in the yield of U.S. Treasury bonds. Investors are now left to wait for testimony from Federal Reserve Chair Janet Yellen’s on America’s monetary system.
The U.S. dollar has strengthened against most currencies as of late, the 0.2% gained against the yen was just the highlight. The jump began late last week when the U.S. employment report was released. The report suggests that interest rates will continue to increase in the future. Additionally, employment growth performed well over its projected rate in the month of June.
According to a report, the economy added 222,000 American jobs this past month. Average wages are on the up as well, rising 2.5%. The low unemployment rate of 4.4% was another piece of good news to emerge from the lastest U.S. jobs report. The country hopes to find full-time work for some five million part-time Americans seeking more hours. But overall, the report was met with satisfaction across the country.
The Bank of Canada is rumored to be following in America’s footsteps. They too are likely to raise interest rates in the hopes of strengthening the country’s currency. After slipping below the U.S. dollar, the loonie had a strong showing on Friday. Thanks to good job growth across the nation, the loonie rose to its highest level in nearly a year.
While little changed for the U.S. dollar against the euro, the overall rise remains good news. The U.S. dollar index remained stable at 95.87, while the New Zealand dollar declined quickly at a .9% rate. The drop is largely due to the threat of a major earthquake. While mother nature’s blasts remain unpredictable, America can rest easy knowing the dollar has found traction.