American focus: the dollar advanced to a one-month high against the euro before tomorrow’s U.S. payrolls report, forecast to show employers added jobs for a third month and the unemployment rate eased to 9.7 percent.
The euro dropped below the 200-day moving average versus the dollar as the European Union discussed spreading the cost of bank failures. Brazil’s real fell as the central bank set reserve requirements on positions against the dollar held by local banks in a third attempt since October to stem a rally in the currency.
“The dollar is really in demand,” said Kathy Lien, director of currency research at online trader GFT Forex in New York. “Non-farm payrolls are still going to be very good, and the risk of an upside surprise is much more significant than a shortfall. A lot of people are positioning for a stronger number.”
The dollar appreciated 1 percent to $1.3018 per euro at 11:12 a.m. in New York, from $1.3149 yesterday, after touching $1.3013, the strongest level since Dec. 1. The greenback traded at 83.11 yen, compared with 83.25 The euro decreased 1.2 percent to 108.19 yen, from 109.47 yen.
IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, advanced for a fourth day, rising as much as 0.7 percent to 80.806, the highest level since Dec. 23.
A December gain of 150,000 in U.S. nonfarm payrolls is the median forecast of 78 economists in a Bloomberg News survey before tomorrow’s Labor Department report. The jobless rate may drop from 9.8 percent.