US dollar soars to highest level since January
THE LONGEST greenback rally in over two and a half decades saw the dollar climb to its strongest level since January yesterday, as the US currency is increasingly seen as a quick safe haven investment.
A report revealing disappointing sales on the high streets and malls of America failed to dampen demand for the dollar, which was pushed up further by a separate report showing US homebuilder sentiment improving to its highest level in five years.
The study from the National Association of Home Builders sent the dollar to a session high against the yen at 80.07 yen.
“It’s not great data but if you compare it to the overall flavour of the Eurozone and China, the US economy is outperforming in its recovery,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
A measurement of the dollar against a basket of six other key currencies, rose above 81 for the first time since the middle of January.
The dollar’s climb from last week continued into Monday and yesterday, with the rally matching lengthy upward turns last seen in the mid-1980s.