China faltering economy is enhancing the dollar’s allure as a growth asset, driving the greenback to maintain gains that have taken it to its strongest in at least a decade.
The dollar climbed for a fourth day versus Australia’s currency after China on Sunday reported exports and imports that contracted more than economists forecast, damping the outlook for nations reliant on commodity shipments. Chinese data on inflation, retail sales and industrial output are due this week. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, surged the most since March on Friday amid speculation the Federal Reserve will lift interest rates next month.
The Bloomberg Dollar Spot Index rose 0.1 percent to 1,233.64 as of 10:07 a.m. in Tokyo after climbing 1.1 percent on Friday, the most since March 19. The greenback rose 0.1 percent to 70.35 cents per Australian dollar, adding to a 2 percent, three-day advance. The greenback climbed 0.2 percent to 123.34 yen and was up 0.1 percent at $1.0731 per euro.
Source : Bloomberg