The US dollar is trading at strongest levels in a month against the Japanese currency and the common European currency backed by reports suggesting recovery in several sectors of the world's largest economy.

The Dollar Index rose to its highest level in a month as reports indicated that the job market is revering in the country with companies adding more jobs in June indicating strengthening job market. Another report suggested that the service sector in the US has recorded strong growth during the first three months of the financial quarter.

The euro was trading lower compare to most of 16 major currencies ahead of the European Central Bank meeting tomorrow. Australia's dollar also rallied after the government showed that the country had a wider trade deficit than expected earlier in May.

The Dollar Index, a widely accepted indicated of the American currency's performance against six major countries, was recorded at 83.56 at in Tokyo this morning after it touched 83.622, which is highest in more than a month. The dollar was trading at $1.2975 per euro compared to $1.2979 yesterday. It was at 100.49 yen after and touching the level of 100.86 yen, which is its highest level since May.