The US dollar reflected positive news coming from the US economy in the last quarter. It strengthened against most world currencies between January and the end of March this year, and this trend is expected to continue in the coming months.
The dollar has shown its strength. This year’s first quarter was its best in almost three years. It strengthened against virtually all major world currencies, responding from January to the end of March to positive news coming from the US economy. Against the euro, it was trading at its strongest level in five months before Easter at $1.176 a euro.
Analysts estimate that the dollar is likely to maintain its current position in the coming weeks, possibly strengthening slightly. This is because of positive expectations supported by up-to-date data from the US labour market or data on advancing coronavirus vaccinations.
More jobs were created in the US economy in March than expected. In March, 916 jobs were created in the United States, and the total number of Americans employed has been 24/7 since December. The unemployment rate fell to a flat six percent in March, and is already about two percentage points above pre-coronavirus levels.