Dollar strengthens on signs of US recovery

THE dollar yesterday reached the strongest level in six weeks against the euro and a three-month high versus the yen as reports suggested the US economy is gaining momentum.

The US currency gained for a fourth straight week against the euro, rebounding by more than 2 cents from its record low set a month ago, as traders cut bets the Federal Reserve will reduce interest rates. Reports showed a third consecutive month of gains in durable goods orders and the biggest jump in new home sales in 14 years in April.

“You may start to see the US economy doing better, starting from the second quarter,” said Joe Trevisani, chief market analyst at FX Solutions. “This will definitely support the dollar.”