Investing.com - The dollar rose to four-month highs against the yen on Thursday after the latest Federal Reserve meeting minutes indicated that the bank could start tapering stimulus in the next few months, while mixed euro zone data weighed on the single currency.
During European morning trade, USD/JPY advanced 0.85% to 100.88, the highest since July 10.
According to the minutes of the Fed’s October meeting, policymakers said they could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The Bank of Japan kept monetary policy on hold following its meeting on Thursday, as it continues efforts to meet its 2% inflation target.
Elsewhere, EUR/USD edged down 0.10% to 1.3425 from 1.3437 on Wednesday.
Data on Thursday showed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service sector activity declined unexpectedly, indicating that the recovery in the bloc is losing momentum.
The euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The euro found some support after Germany's manufacturing PMI rose to a 29 month high this month, while the services sector PMI rose to a nine-month high.
However, weaker-than-expected French data indicated that activity in the euro zone’s second-largest economy contracted for the first time in three months in November.
The pound was slightly lower against the dollar, with GBP/USD slipping 0.11% to 1.6086.
The U.K. public deficit fell to GBP8.078 billion in October from GBP8.242 billion a year earlier, according to a report by the Office for National Statistic on Thursday.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.14% to 0.9174.
The greenback was broadly stronger against the Australian, New Zealand and Canadian dollars, with AUD/USD dropped 0.71% to 0.9267, NZD/USD losing 0.73% to trade at 0.8210 and USD/CAD rising 0.16% to 1.0463.
Sentiment on the commodity linked Australian and New Zealand dollars was hit after data indicated that manufacturing activity in China slowed this month.
China’s HSBC manufacturing index ticked down to 50.4 in November, from a final reading of 50.9 in October, missing forecasts for a reading of 50.8.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 81.21.
During European morning trade, USD/JPY advanced 0.85% to 100.88, the highest since July 10.
According to the minutes of the Fed’s October meeting, policymakers said they could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The Bank of Japan kept monetary policy on hold following its meeting on Thursday, as it continues efforts to meet its 2% inflation target.
Elsewhere, EUR/USD edged down 0.10% to 1.3425 from 1.3437 on Wednesday.
Data on Thursday showed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service sector activity declined unexpectedly, indicating that the recovery in the bloc is losing momentum.
The euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
The currency bloc’s services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
The euro found some support after Germany's manufacturing PMI rose to a 29 month high this month, while the services sector PMI rose to a nine-month high.
However, weaker-than-expected French data indicated that activity in the euro zone’s second-largest economy contracted for the first time in three months in November.
The pound was slightly lower against the dollar, with GBP/USD slipping 0.11% to 1.6086.
The U.K. public deficit fell to GBP8.078 billion in October from GBP8.242 billion a year earlier, according to a report by the Office for National Statistic on Thursday.
The dollar pushed higher against the Swiss franc, with USD/CHF rising 0.14% to 0.9174.
The greenback was broadly stronger against the Australian, New Zealand and Canadian dollars, with AUD/USD dropped 0.71% to 0.9267, NZD/USD losing 0.73% to trade at 0.8210 and USD/CAD rising 0.16% to 1.0463.
Sentiment on the commodity linked Australian and New Zealand dollars was hit after data indicated that manufacturing activity in China slowed this month.
China’s HSBC manufacturing index ticked down to 50.4 in November, from a final reading of 50.9 in October, missing forecasts for a reading of 50.8.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 81.21.