The U.S. dollar strengthened against its major opponents in the Asian session on Thursday, as President Joe Biden’s $2.3 trillion infrastructure plan further boosted the prospects of a faster recovery in the economy.
Biden’s multitrillion-dollar proposal includes funding for bridges, roads and water projects and expansion of broadband access and domestic chip production.
The plan would increase the corporate tax rate to 28 percent from 21 percent to pay for the package.
Investors await reports on weekly jobless claims, manufacturing activity and construction spending due later in the day.
The Labor Department is scheduled to release its more closely watched monthly jobs report on Friday, which includes both public and private sector jobs.
Economists currently expect employment to jump by 639,000 jobs in March after an increase of 379,000 jobs in February. The unemployment rate is expected to drop to 6.0 percent from 6.2 percent.
The greenback jumped to 0.9462 against the franc, its highest level since July 2020. If the greenback rises further, 0.96 is likely seen as its next resistance level.
The greenback edged up to 1.3746 against the pound and 1.1713 against the euro, from its early lows of 1.3791 and 1.1733,respectively. The next likely resistance for the greenback is seen around 1.34 against the pound and 1.14 against the euro.
The greenback remained higher against the yen, with the pair trading at 110.70. On the upside, 112.00 is possibly seen as its next resistance level.
The greenback gained to 1.2602 against the loonie, up from Wednesday’s close of 1.2562. The greenback is seen finding resistance around the 1.27 area.
The U.S. currency appreciated to a 6-day high of 0.6946 against the kiwi and more than a 3-month high of 0.7532 against the aussie, from Wednesday’s closing values of 0.6984 and 0.7593, respectively. The greenback is likely to challenge resistance around 0.68 against the kiwi and 0.74 against the aussie.
Looking ahead, PMI reports from major European economies are due in the European session.
Canada building permits for February, U.S. weekly jobless claims for the week ended March 27, ISM manufacturing PMI for March and construction spending for February are set for release in the New York session.