Aug 02 2013

As the improvements in the economy of U.S has been added to the case for Federal Reserve for slowing down the pace of purchasing bonds which tends to debase the currency, the dollar has gained a rise against its all major peer currencies.

Before the release of employment data for July by Labor Department, the greenback rebounded from the lowest level in six weeks against the Euro. Reports say that the claims for the jobless benefits have fallen to five years low and the manufacturing expanded faster than the estimate. The dollar of Australia has dropped to the lowest level in three years before Reserve Bank sets policy next week, when the cutting of interest rate is expected to record low.

Masato Yanagiya, the head of foreign exchange and money trading in New York at Sumitomo Mitsui Banking Corp., a unit of Japan’s second biggest financial group by market value, said that the Fed is most likely to taper monetary stimulus in the month of September.  He also added that the dollar will be remaining well bid if the figures of jobs on Friday are good.

Rate Range Projection by Bank

Next  Week       :    98.00 - 100.50

Next 3 Months   :    90.00 - 105.00