A gauge of the dollar approached a 10-year high on speculation the U.S. is moving toward raising interest rates as policy makers in Europe and Japan meet to discuss further measures to bolster their stagnant economies.
The U.S. currency climbed for a third day versus the yen as the Japanese central bank considers expanded monetary easing at a policy meeting ending tomorrow. The euro was at almost the lowest level in 11 years before the European Central Bank meets this week amid bets it will announce sovereign-bond buying under quantitative easing. The International Monetary Fund cut growth forecasts almost everywhere except the U.S. Canada™s dollar plunged to an almost six-year low. The Swiss franc gained.
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, climbed 0.5 percent to 1,145.74 as of 2:15 p.m. New York time. It closed at 1,147.54 on Jan. 8, the highest in data going back to 2004.
The dollar appreciated 1 percent to 118.80 yen. It climbed 0.5 percent to $1.1549 per euro after rising to $1.1460 on Jan. 16, the strongest level since November 2003. The shared currency gained 0.6 percent to 137.21 yen.