The dollar approached its highest levels in six months on Monday, as traders awaited the interest rate decisions of the Federal Reserve, the Bank of England and the Japanese central bank this week.
The euro settled against the US currency at 1.0658 dollars. The Japanese yen settled at 147.69 to the dollar. The dollar index, which measures the greenback against a basket of currencies, rose slightly to 105.32.
“Reuters” pointed out that the index recorded the ninth rise in a row last week as the strength of the US economy stabilizes. The index touched 104.53 on Thursday, its highest level since mid-March.
Alvin Tan, head of Asian exchange rate strategy at RBC Capital Markets, said that they are adopting a positive view of the dollar with the US economy outperforming both the economies of Europe and Asia, especially China.
Traders are waiting for a set of central bank decisions this week, which may shake the currency markets.
Investors expect the Fed to fix interest rates in a range of 5.25% to 5.5%, at its meeting on Wednesday.
