TOKYO: The dollar hovered near its highest level in 6-1/2 months against a basket of major currencies on Thursday after solid job data fueled hopes that the US economy is improving.
In contrast, the British pound fell to a 2-1/2-year low as market players positioned for more stimulus from the Bank of England as the UK economy faces the threat of triple-dip recession.
The yen and the euro were undermined by expectations the Bank of Japan and the European Central Bank could ease in the future, if not on Thursday.
"One reason the dollar is broadly strong could be that while the world's many other central banks are eyeing more easing, at least at the Fed the debate is about exiting from stimulus, not doing more of it," said Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
The dollar index last stood at 82.533, having risen as high as 82.604, its highest since Aug. 20, in late Wednesday trade. It has rallied more than 4 percent from this year's trough of 78.918 plumbed on Feb. 1.
Report showing US private employers added a larger-than-expected 198,000 jobs in February bolstered hopes that Friday's US non-farm payrolls will surprise on the upside.
A strong reading could fuel speculation about when the Fed will end its bond buying programme even though investors still think it will be months away to say the least.
The dollar index stood about just 0.1 percent below an important resistance around 82.72 from a declining trendline connecting its 2010 and 2012 highs.
A clear break would strengthen the case for the dollar's further uptrend and open the way for a test of its 2012 peak of 84.10.
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