Dollar Index Trades at Almost 6-Month High on Services Expansion

The Dollar Index traded at almost its highest level in six months as service industries in the U.S. expanded in February at the fastest pace in a year, adding to signs of economic acceleration.

The U.S. currency was supported after the Institute for Supply Management’s non-manufacturing index exceeded forecasts, fueling speculation the Federal Reserve may have scope to reduce monetary stimulus earlier than projected. The yen erased losses before the Bank of Japan convenes for a two-day meeting starting tomorrow. Australia’s currency climbed versus the dollar as the central bank kept interest rates on hold.