The US dollar is much stronger to start the trading week as Americans are becoming more optimistic about the economy and speculators are watching inventory levels on crude oil and other commodities.

The dollar is significantly higher against major currency counterparts in early Tuesday (March 29) morning New York currency trading.

One euro currently nets $1.40755, which is about two pips below its recent 2011 high from March 21st. Several technical analysts believe the dollar is in the midst of a major reversal of direction against the euro and other top currencies according to historical charts.

A British pound is worth $1.59567 as it continues to waiver up and down at the $1.60 level. The pound hit its 52-week high point against the greenback at $1.6401 just one week ago on March 22nd.

Perhaps the most notable sign of dollar strength has been its strong resistance to a sub-80 yen value.

One dollar touched a historic low at 76.57 yen in a tremendous drop many attribute to an electronic trading glitch on March 16th, but it has since rebounded and shows a current rate of 82.25 yen.

Current dollar strength also shows in declines in oil prices and gold prices. One barrel of light sweet crude futures is off $.83 over Monday’s settle price and currently trades for $103.15.

Oil speculators are watching closely as Libyan rebels are nearing an overthrow of Moammar Gadhafi, which could spark increased crude exports for the major oil producing nation. Additionally, this week’s crude inventory levels will be closely monitored.

Gold prices have also felt pressure from the rising dollar. One ounce of gold trades for just $1,417.10 in early Tuesday morning New York NYMEX trade. Just five days ago on March 24th, gold established a new record high price of $1,447.

The increased interest in the dollar is likely to perpetuate as speculators become more confident the Central Bank is prepared to raise interest rates.