Dollar hits five-year high

Photo: Images_of_Money

The US dollar has grown significantly in the past year, as the recovering American economy boosts the greenback. Now, though, figures from Bloomberg reveal that the past week has been the strongest in almost 12 months for the currency, with the Bloomberg Dollar Spot Index climbing 0.8 per cent to 1,121.48 today against 10 major currencies, taking its weekly rise to 1.3 per cent. This would mark its highest close since 2009 and its seventh weekly growth in a row.

The dollar's strength arrives as - and is bolstered by - the euro Sees continuing weakness, fuelled by growing economic concerns. Indeed, the dollar is now at its highest level against the single currency.

The pound has also enjoyed a good seven days, with experts forecasting its biggest weekly climb since September 2014. Similarly, it is also performing well against the euro, with the Autumn Statement on Wednesday upgrading GDP predictions for 2016, fuelling a rise of 0.3 per cent versus its continential counterpart.

“Euro-sterling could easily over the next year or two hit below 70 pence,” Paul Bednarczyk, a currency strategist at 4Cast Ltd, tells Bloomberg.

The figures are echoed by investor trends in recent months, as a growing number of buyers from the UK and US turn towards European destinations, such as Spain, Portugal, France and Italy on TheMoveChannel.com. In November 2014, Spain accounted for 1 in 10 of all enquiries on the site, its highest level of demand since November 2013.