Currency report: Dollar on the top

The dollar rallied, gaining support from a recent run of upbeat economic data that has lowered expectations the Federal Reserve may cut interest rates in the coming months.

The greenback got a helping hand on Wednesday when the Institute for Supply Management said the US factory sector expanded in December, defying forecasts of a repeat of the previous month's contraction.

The dollar rallied on Friday after data showed surprisingly strong growth in US jobs in December, dampening expectations of interest rates cuts in the coming months. The euro plunged to its lowest level since late November against the dollar after the Labor Department said that the US economy generated 167,000 new jobs in December, well above market expectations of a rise of 100,000.

The złoty lost ground after President Lech Kaczyński nominated an ally and commercial bank executive Sławomir Skrzypek for central bank chief on Wednesday. The EUR/PLN rose to zł.3.89 and the USD/PLN to zł.2.99 on Friday.

Marek Węgrzanowski

X-Trade Brokers Dom Maklerski SA