Dollar Advances as Jobless Report Spurs Fed Taper Expectations
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The dollar gained versus all 16 of its most-traded counterparts as claims for jobless benefits fell to a five-year low, adding to speculation that the Federal Reserve will slow the pace of monthly asset purchases this year.
The euro dropped from a six-week high against the dollar as European Central Bank President Mario Draghi said policy makers expect interest rates in the region to stay low for an extended period. The greenback extended its gain against the yen before a Labor Department report tomorrow that will show U.S. nonfarm payrolls rose by 185,000 workers in July, according to the median forecast in a survey conducted by Bloomberg. The Swedish krona slumped after factory orders slowed.