28 November 2005, 12:05  Dollar rises on speculation reports will signal faster growth

The dollar rose against the euro and reached a 27-month high versus the yen in Europe on speculation U.S. government and industry reports this week will signal faster growth. Against the euro, the dollar climbed 2.8 percent this quarter, reversing losses in September after Hurricane Katrina devastated New Orleans. Employers in November likely added almost four times as many workers as the prior month, a Bloomberg survey shows. They cut jobs in September for the first time in more than two years. ``Most of the numbers in the U.S. actually are starting to come back in line after hurricanes affected the period in the third quarter,'' said Craig Ferguson, a currency strategist at Australia & New Zealand Banking Group Ltd. in Melbourne. ``It's still a buy-the-dollar story.'' The U.S. currency traded at $1.1695 against the euro at 7:22 a.m. in London from $1.1726 in late New York trading on Nov. 25, according to electronic foreign-exchange dealing system EBS. The dollar was at 119.85 yen from 119.63. It rose as high as 119.87 yen, the strongest since Aug. 6, 2003. The currency may reach 121 yen by the end of the year, Ferguson said. The Labor Department's job report on Dec. 2 will probably show the economy created 215,000 jobs in November compared with October's 56,000, according to a survey. The unemployment rate likely held at 5 percent for a second month, close to the four- year low of 4.9 percent reached in August. The Institute for Supply Management's November manufacturing index is forecast at 58, above the 50-point line indicating growth and compared with the year's average of 55.4, a separate survey showed. The index, to be released Dec. 1, fell to 53.6 in August.

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