Dollar Strengthens to 9-Month High Against Euro
The dollar rose to the strongest level in almost nine months versus the euro as signs the U.S. economy is strengthening and tensions over Ukraine are increasing boosted the appeal of American assets.
The yen advanced against all 31 of its major peers as a haven after NATO said there’s a risk of Russia sending troops into Ukraine under the “pretext” of a humanitarian or peacekeeping mission. The euro fell as data showed German factory orders fell and Italy returned to recession. New Zealand’s dollar slid to a two-month low after job growth slowed. Most Asian currencies fell.
“You’ve got to stick with the dollar,” said Derek Halpenny, the head of global-markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. Ukraine “is back in focus as something that could have a fairly negative impact on growth. The U.S. is in a far better shape and the dollar’s historic link with periods of uncertainty and risk is second to none, so that’s where investors would go.”
The dollar advanced 0.2 percent to $1.3349 per euro as of 8:24 a.m. New York time after appreciating to $1.3333, the strongest level since Nov. 8. The U.S. currency declined 0.2 percent to 102.34 yen. The euro depreciated 0.4 percent to 136.63 yen.