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Dollar higher vs. yen, strong GDP data boosts pound

Published 10/25/2012, 07:31 AM
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Investing.com - The U.S. dollar was trading close to four-month highs against the yen on Thursday, amid concerns over more easing by the Bank of Japan, but the greenback was down against the pound after stronger-than-expected U.K. third quarter growth.

During European early afternoon trade, the dollar was higher against the yen, with USD/JPY up 0.40% to 80.12.

The yen remained under broad selling pressure amid mounting speculation over the possibility of more easing by the BoJ at its upcoming policy meeting on October 30.

The greenback was weaker against the pound, with GBP/USD rising 0.64% to 1.6140.

In the U.K., official data showed that the economy expanded by 1.0% in the three months to September, pulling the economy out of the longest double dip recession since 1955 and outstripping expectations for a 0.6% gain.

The increase in third quarter growth was boosted by ticket sales for the London Olympics, as well as a rebound following an extra public holiday for the Queen’s Jubilee in the second quarter.

The greenback was lower against the euro, with EUR/USD up 0.23% to 1.3002.

Sentiment on the single currency remained fragile as investors awaited any indication that Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.

Elsewhere, the greenback slid lower against the Swiss franc, with USD/CHF losing 0.24% to trade at 0.9300.

The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD down 0.27% to 0.9907, AUD/USD climbing 0.44% to 1.0388 and NZD/USD rising 0.39% to 0.8235.

Earlier Thursday, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 2.5%, marking Governor Graeme Wheeler's first decision as head of the central bank, after replacing Alan Bollard in late September.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.19% to 79.85.

Later Thursday, the U.S. was to release official data on durable goods orders, as well as reports on pending home sales and initial jobless claims.


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