New York: The dollar rose against the euro and the yen for the second straight day, gaining back more ground from losses after last week’s poor US jobs report.
“Dollar bulls are back in control and they plan to take the greenback higher,” said Kathy Lien of BK Asset Management.
The euro fell to $1.0813 around 2100 GMT, down from $1.0928 late Monday.
Lien said that bargain hunters saw an opportunity in the market after Friday’s labor report, showing a sharp slowdown in jobs growth, triggered a short-term correction in the currency.
“The general demand for risk assets and specific appetite for US dollars in the last 48 hours tells us that investors have dismissed the soft release as a one-month correction that will not affect the Federal Reserve’s plans to tighten,” Lien said.
Forex traders were looking ahead to the release of minutes from the Federal Reserve’s March 17-18 policy meeting.
“The Federal Open Market Committee meeting minutes may undermine the bullish sentiment surrounding the US dollar should the statement highlight a more cautious stance on the economy and emphasize the risks surrounding the stronger exchange rate,” said David Song, currency analyst at DailyFX.
The euro, meanwhile, was under pressure from the situation in Greece, which is facing a Thursday deadline for its next bailout repayment to the International Monetary Fund, of 460 million euros.
Eurozone deputy finance ministers will meet on Wednesday and Thursday to seek agreement on the Greek reforms needed to unlock the last tranche of its IMF-European Union bailout package. (AFP)