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Dollar edges higher on euro
[NEW YORK] Major currencies moved little in trade Tuesday with eyes on Greek bailout talks, but key US labor market indicators and surging Treasury yields pointed to strength in the greenback.
The dollar edged up to US$1.1280 per euro, but was slightly lower on the yen, at 140.23 yen, and the pound, at US$1.5387.
Hopes of a agreement between Athens and its official creditors rose slightly after Valdis Dombrovskis, the EU vice president for the euro, told reporters that "reaching the agreement within coming days is possible." But he urged the Greeks to show "less tactical manoeuvering and more work on substance," suggesting the path toward a deal was still rocky.
In the United States, the JOLTS (Job Openings and Labor Turnover Survey) report showed a surge in job vacancies, while the NFIB Small Business Survey showed businesses were hiring more people and paying them more.
Together the two reports added up to pressure on the Federal Reserve to raise rates, analysts said, and bond markets took it as such. The ten-year Treasury yield jumped to 2.44 per cent, the highest level in eight months.
Kathy Lien of BK Asset Management said the signs were there for more strengthening of the greenback.
"The dollar's long term uptrend has not changed, but in the short term this latest pullback gives us the opportunity to buy the dollar at lower levels," she said.