Dollar bulls helped to push the U.S. Dollar higher and close to a 6-month peak versus a weighted basket of its peers with FX traders saying that repatriation of funds by U.S. corporations as the month draws to a close may have helped to push the greenback higher in the absence of any key economic data. Key data is, however, looming with the first estimate of GDP results for the second quarter due out tomorrow and Dollar bulls are hoping that analysts’ expectations of a rise to 3.0% annually are met which would provide that the U.S. economy may have rebounded from a disappointing first quarter.
As reported at 11:13 a.m. (JST) in Tokyo, the U.S. Dollar Index traded 0.2% higher to 80.208 .DXY, dipping from a session peak of 81.245 .DXY. The EUR/USD was trading lower at $1.3404, a fresh 8-month trough which puts last November’s low in sight. The USD/JPY, meanwhile, rose to 102.00 Yen while the EUR/JPY steadied at 136.93 Yen.
Kiwi Falls on Fonterra Announcement
In New Zealand, the Kiwi Dollar struck a 7-week trough against its U.S. counterpart and traded at $0.8495 on the back of an announcement from Fonterra, one of New Zealand’s largest diary producers, that it was forecasting a payout reduction to suppliers in the upcoming season. Since July 10th, the NZD/USD has lost nearly 3.7% of its value as investors speculate that the Reserve Bank of New Zealand may intervene in the too-strong currency.