The dollar strengthened to an almost nine-month high against the euro after European Central Bank President Mario Draghi signaled monetary policy will diverge from the U.S. for an extended period of time.
The greenback rose against all but one of its 16 main peers as unemployment claims dropped, pushing the average over the past month to an eight-year low. Russia’s ruble declined to a three-month low as political tension in Ukraine deepened. Australia’s dollar fell by the most in a month against its U.S. counterpart as traders revived bets the nation’s central bank will cut interest rates after unemployment jumped, while Israel’s shekel slumped after the central bank intervened.
“There’s a realization that we’re in a period of euro weakness now that fundamentals are coming in play,” Alan Robinson, global portfolio adviser at Royal Bank of Canada’s RBC Wealth Management unit in Seattle, said in a phone interview. “If anything has changed in the past few months, it’s that we have the clearest sense that regional economies are diverging more than we expected.”
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