NEW YORK/LONDON (Reuters) – The dollar gained ground, with traders continuing to bet on the U.S. economy performing better than other economies, and for the third day the U.S. currency rose against the yen, keeping investors on alert for the risk of intervention by Tokyo.
In Europe, the Swedish krona is under pressure after the central bank cut interest rates and said it expects two more cuts this year, while the pound remains in negative territory ahead of tomorrow’s Bank of England meeting .
At 4.40 pm Italian time, the dollar advanced by 0.55% against the yen at 155.54, and from last week’s low of 151.86.
Investors are focused on the pace and timing of the Fed’s rate cuts. The latest weaker-than-expected U.S. job creation data, coupled with a more monetary easing bias by the Fed, have consolidated expectations of a probable rate cut by the end of the year.
The dollar rose 0.1% to 105.52 against a basket of currencies, surpassing last week’s one-month low.
Meanwhile, European central banks have already started cutting interest rates. The Swiss National Bank cut in March, preceding today’s move by the Swedish Riksbank.
The European Central Bank has signaled its intention to cut in June, if macro data confirms the direction taken, and the BoE is gradually paving the way for its first cut.
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The euro lost 0.04% to 1.0747 dollars.
The pound weakened 0.14% to $1.2487.
(Translated by Camilla Borri, editing by Andrea Mandalà)
