04.09.201305:51:39UTC+00U.S. Dollar exchanges near 6-week high against Euro on fed tapering bets

The dollar exchanged 0.2 percent from a six-week high versus the euro in the middle of indications that the U.S. economic recovery is gaining traction, providing more to the case for the Federal Reserve to trim down stimulus this month.

The Bloomberg U.S. Dollar Index was 0.2 percent from a seven-week high before the Fed releases today its economic outlook survey known as the Beige Book. Economists forecast Labor Department data due Sept. 6 will show non-farm payrolls increased 180,000 in August. The yen slightly take advantage as domestic stocks slide down after an earthquake shook buildings in Tokyo. The pound was near a three-month high versus the euro.

Japan Quake

The yen briefly surged as domestic stocks collapsed after an earthquake shook buildings in Tokyo.

Fed Tapering

Fed policy makers are debating whether the economy is strong enough to allow them to pare monthly purchases of $85 billion in Treasuries and mortgage debt, which tend to debase the dollar. Officials will reduce the amount at their next meeting on Sept. 17-18, according to 65 percent of economists in an Aug. 9-13 Bloomberg poll.

The ADP Research Institute will probably say tomorrow payrolls increased by 180,000 last month, following a 200,000 gain in July, the most since December, according to the median estimate of economists surveyed by Bloomberg. Nonfarm payrolls rose 180,000 in August, and the jobless rate held at 7.4 percent, economists in separate polls forecast before the Labor Department figures on Sept. 6.

The Institute for Supply Management’s manufacturing index increased to 55.7 last month, the highest since June 2011, the Tempe, Arizona-based group reported yesterday.

In Australia, second-quarter gross domestic product advanced 0.6 percent from the previous three-month period, when it rose a revised 0.5 percent, a Bureau Statistics report released in Sydney today showed.

The pound climbed to a three-month high against the euro yesterday as Markit Economics and the Chartered Institute of Purchasing and Supply said a gauge of U.K. construction increased in August. The Bank of England and the European Central Bank will announce interest rate decisions tomorrow.