U.S Dollar has caught this month as its best….

The dollar headed for the biggest monthly gain against the Euro in almost a year on anticipation that the Federal Reserves will keep the interest rates at a six-year high as the economy is moving faster than expected. The Currency is also made of powerful preparations to beat the Yen. A Government report may show the world’s largest economy expanding at a very faster pace. This report may see the Fed becoming more confident.

Dollar’s Trading:

The dollar traded at $1.2965 per Euro late yesterday and has risen to 1.8% this month. And against the Yen it traded at 121.51Y. The dollar has risen to 4% against the yen since from Dec 12^th, 2006. Out of 16 most-active currencies, the dollar has gained against 14 currencies including the Swiss Franc and the Australian Dollar.

Dollar’s Monthly-Performance:

This month the dollar rose to two-month high against the Swiss Franc and one-month high against the Australian dollar. Japan’s standard is now lowest among the industrialized nations, encouraging the so-called carry trade where the investors borrowing low-yielding currencies to invest and buy the high-yielding currencies and assets. The yen has become the target for every investor since its yield is low…