Investing.com - The dollar rose to six-month highs against the yen on Wednesday and pulled back from one month lows against the euro following the release of a batch of mostly upbeat U.S. economic data.
During U.S. morning trade, USD/JPY was up 0.81% to 102.08, the highest since May 29.
The dollar was boosted after the University of Michigan said its index of overall consumer sentiment was revised up to 75.1 in November from a preliminary estimate of 72.0. Economists had expected the index to be revised up to 73.5.
The report was released two days in advance due to the U.S. Thanksgiving holiday on Thursday.
A separate report showed that manufacturing activity in the Chicago-area expanded at a faster rate than expected in November.
Earlier Wednesday, the Department of Labor said the number of individuals filing for initial jobless benefits last week declined by 10,000 to a two month low of 316,000. Economists had forecast an increase of 4,000.
The jobs data was released one day early due to the U.S. holiday.
The upbeat data offset a report showing that U.S. durable goods orders fell 2% in October, worse than expectations for a 1.9% decline, while core durable goods orders were down 0.1%, compared to expectations for a 0.5% increase.
The data did little to alter expectations that the Federal Reserve will start to taper stimulus at one of its next few meetings.
The yen remained broadly weaker amid heightened expectations that the Bank of Japan will implement more easing measures next year.
Earlier Wednesday, BoJ board member Sayuri Shirai raised doubts over whether the bank’s target of 2% inflation can be reached by 2015 because of downside risks to growth.
Elsewhere, EUR/USD was up just 0.04% to 1.3577, off highs of 1.3613.
The euro rose to session highs against the dollar earlier after data showed that the forward looking Gfk index of German consumer climate rose to a six year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The dollar pulled away from 10-month lows against the pound, with GBP/USD rising 0.40% to 1.6279, off highs of 1.6330.
Sterling remained supported after data on Wednesday showed that the second estimate of U.K. third-quarter gross domestic product was unchanged at 0.8% quarter-on-quarter, while the annual rate of growth was also unchanged at 1.5%. It was the fastest quarterly rate of growth in over three years.
The dollar moved higher against the Swiss franc, with USD/CHF rising 0.19% to 0.9080.
The greenback strengthened against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.52% to 0.9077, NZD/USD dropping 0.78% to trade at 0.8129 and USD/CAD climbing 0.46% to 1.0588.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.09% to 80.71.
During U.S. morning trade, USD/JPY was up 0.81% to 102.08, the highest since May 29.
The dollar was boosted after the University of Michigan said its index of overall consumer sentiment was revised up to 75.1 in November from a preliminary estimate of 72.0. Economists had expected the index to be revised up to 73.5.
The report was released two days in advance due to the U.S. Thanksgiving holiday on Thursday.
A separate report showed that manufacturing activity in the Chicago-area expanded at a faster rate than expected in November.
Earlier Wednesday, the Department of Labor said the number of individuals filing for initial jobless benefits last week declined by 10,000 to a two month low of 316,000. Economists had forecast an increase of 4,000.
The jobs data was released one day early due to the U.S. holiday.
The upbeat data offset a report showing that U.S. durable goods orders fell 2% in October, worse than expectations for a 1.9% decline, while core durable goods orders were down 0.1%, compared to expectations for a 0.5% increase.
The data did little to alter expectations that the Federal Reserve will start to taper stimulus at one of its next few meetings.
The yen remained broadly weaker amid heightened expectations that the Bank of Japan will implement more easing measures next year.
Earlier Wednesday, BoJ board member Sayuri Shirai raised doubts over whether the bank’s target of 2% inflation can be reached by 2015 because of downside risks to growth.
Elsewhere, EUR/USD was up just 0.04% to 1.3577, off highs of 1.3613.
The euro rose to session highs against the dollar earlier after data showed that the forward looking Gfk index of German consumer climate rose to a six year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The dollar pulled away from 10-month lows against the pound, with GBP/USD rising 0.40% to 1.6279, off highs of 1.6330.
Sterling remained supported after data on Wednesday showed that the second estimate of U.K. third-quarter gross domestic product was unchanged at 0.8% quarter-on-quarter, while the annual rate of growth was also unchanged at 1.5%. It was the fastest quarterly rate of growth in over three years.
The dollar moved higher against the Swiss franc, with USD/CHF rising 0.19% to 0.9080.
The greenback strengthened against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.52% to 0.9077, NZD/USD dropping 0.78% to trade at 0.8129 and USD/CAD climbing 0.46% to 1.0588.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.09% to 80.71.