The US dollar rose against almost all of its major counterparts today, touching the highest level since January versus the Japanese yen and reaching the strongest rate in a year against euro, as the monetary policy outlook continues to support the currency.
The dollar demonstrated remarkable performance in August with help of speculations about eventual monetary tightening from the Federal Reserve. The greenback entered the new trading month with strong upward momentum and for now it looks like the currency is going to maintain its rally.
Trading was subdued and volume was thin on Monday because of the Labor Day holiday in the United States. It did not prevent the dollar from gaining on the yen, and the rise accelerated today. The US currency fell versus the Great Britain pound yesterday but pared losses today.
EUR/USD fell from 1.3128 to 1.3120 as of 3:26 GMT today, trading near the lowest level since September 6, 2013. GBP/USD dropped from 1.6606 to 1.6580. USD/JPY climbed from 104.34 to 104.76, trading close to the strongest rate since January 23.
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