Dollar climbs on bets that US will outperform

London

A GAUGE of the dollar climbed for a second day as investors favoured the US on signs that its economic momentum is set to outpace the country's major peers. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose before the Federal Reserve releases its Beige Book on economic conditions. Norway's kroner weakened to a four-year record versus the dollar and Canada's dollar set a five-year low as crude oil traded at the cheapest level since 2010.

"If the focus switches back to the US domestic situation, rather than a weaker global picture, that favours a stronger dollar," said Michael Sneyd, a foreign-exchange strategist at BNP Paribas SA in London. The Bloomberg dollar index rose 0.1 per cent to 1,069.13 at 7.12 am New York time, adding to the previous day's 0.3 per cent advance. The dollar strengthened 0.1 per cent to US$1.2646 per euro, following an 0.7 per cent rally on Tuesday that was the strongest since Oct 3. The greenback climbed 0.1 per cent to 107.20 yen. The euro was little changed at 135.56 yen.