Dollar climbs to four-month highs

March 28 | Updated: Mar 29 2005, 05:30am hrs
The dollar climbed to a four-month high against the yen and gained versus the euro on speculation reports that this week will signal US growth is accelerating, while the economies of Germany and Japan struggle to expand.

The US currency also advanced versus the British pound and Swiss franc as economists forecast employers added more than 2,00,000 jobs for the second straight month in March. Separate releases may show Japanese factory production declined and German unemployment rose to a postwar high.

The dollar still has much more room to gain, said Yusuke Fujisawa, who invests in overseas debt at Dai-Ichi Kangyo Asset Management in Tokyo, which handles the equivalent of $17 billion.

This weeks data will come as a reminder that the US economy is by far the strongest, compared with those of Japan and Europe.

Against the yen, the dollar rose to 107.13 at 9:02 am in New York from 106.40 late on March 25, according to EBS, an electronic foreign-exchange dealing system.

The US currency strengthened to as much as 107.15, the most since November 10. The dollar climbed to a six-week high of $1.2874 against the euro. Mr Fujisawa said he may consider increasing his holdings of dollar-denominated debt. The dollar may gain to 108 yen in a month, Mr Fujisawa said.

Bloomberg