“The stronger U.S. numbers are boosting the dollar,” Vassili Serebriakov, a foreign-exchange strategist at BNP Paribas SA in New York, said in a phone interview. “With the Fed’s tapering signal being strongly data-dependent, markets will continue to be particularly sensitive to high-frequency U.S. data.”
The Dollar Index, which Intercontinental Exchange Inc. uses to monitor the U.S. currency against those of six trading partners, gained 0.2% to 82.548, after climbing yesterday to the strongest since June 5.
John Taylor, the founder of foreign-exchange hedge fund FX Concepts LLC, who previously called for the euro to weaken to parity versus the dollar, has become bullish on the 17-nation currency.
“The fact of the matter is, if you’re running a large trade surplus, if capital inflows are large, and if your central bank is tight -- and that one is tighter than the U.S. -- then your currency just won’t go down,” Taylor said during an interview on Bloomberg Television’s “Surveillance” with Tom Keene and Sara Eisen. “Even I own the euro.”
Hedge funds and other large speculators last week shifted their bets to an advance for the euro against the dollar for the first time since February, figures from the Washington-based Commodity Futures Trading Commission show.