Dollar rises as upbeat US jobs data clears way for rate hike
TOKYO: The dollar rose on Monday as strong US jobs data cleared what analysts said may be the final hurdle to the first Federal Reserve interest rate hike in nearly a decade.
Official data Friday showed more than 200,000 new jobs were created in the United States in November, reinforcing the view that the world’s top economy was in recovery.
The Fed is widely expected to announce its first rate hike since 2006 at a policy meeting next week. In Tokyo, the greenback rose to 123.28 yen from 123.16 yen Friday in New York. It was at 122.77 yen in Tokyo Friday ahead of the US jobs report.
The dollar also rose against a string emerging market currencies in Asia, with the South Korean won dropping nearly one percent.
Asian units have been hit hard this year on fears of a flight of capital to the United States as dealers look for better, safer investments on the back of the looming US rate lift-off.