Dollar Near One-Week High After Obama Says Currency Is ‘Strong’

[Enivid]

The dollar traded near the highest level in a week against the euro after President Barack Obama said the U.S. currency is “extraordinarily strong” because investors are confident in the economy.

The yen rose for a second day versus the European currency on speculation Japanese companies are bringing back earnings on overseas assets before the financial year ends next week. The euro may fall for a fifth day against the British pound, the longest losing stretch in 10 weeks, before a German report today that economists say will show business confidence dropped to the lowest level in more than 26 years.

“The confidence about the U.S. economy and the dollar is gradually recovering,” said Ryohei Muramatsu, manager of Group Treasury Asia in Tokyo at Commerzbank AG, Germany’s second- largest lender. “Thanks to aggressive policy steps there is an emerging view that the U.S. economy, which had slipped into a recession first, has a better chance of pulling out of the doldrums ahead of other countries.”

The U.S. currency traded at $1.3480 per euro as of 6:30 a.m. in London from $1.3468 late in New York yesterday, when it reached $1.3431, the strongest since March 19. The greenback was at 97.58 yen from 97.86 yen. The euro was at 91.85 British pence from 91.72 pence. The yen traded at 131.53 per euro from 131.81.

From Bloomberg News.