The Dollar continued its decline for the seventh week in a row, with the Dollar index hitting 88.56 - its lowest level against a basket of currencies since mid-December 2014, as investors focused on the strength of economic data in the Euro-zone.
On the other hand, the Japanese yen fell against the US dollar after the Bank of Japan purchased bonds to stop rising Japanese bond yields. The Bank of Japan increased its 5-10 years bond purchases to 450 billion yen from 410B yen. So, USDJPY rose to its highest level since January 24 at 109.82. The yield of US 10-year bonds was at 2.797%, the highest level since April 2014.
The Euro continues to rise on optimism about the Eurozone economy, reaching a 3-year high of 1.25 levels, and supporting expectations that the ECB will tighten monetary policy sometime this year.
Later in the day, markets are eyeing US employment data to get some support for the US dollar. It is expected that the economy will add about 180,000 jobs in January and unemployment will remain at its 17-year low of 4.1%.
