Investing.com - The dollar traded up to fresh six month highs against the weaker yen on Monday, while the pound rose to 27-month highs against the dollar after robust U.K. manufacturing data fuelled expectations that the Bank of England will tighten policy before other central banks.
During European morning trade, USD/JPY was up 0.28% to 102.73, the highest level since May 23.
The yen remained under pressure on the view that the Bank of Japan will implement further stimulus measures in order to meet its target of 2% inflation by 2015.
Earlier Monday, BoJ Governor Haruhiko Kuroda pledged to counter any new downside risks to the bank’s inflation goal, saying the BoJ would act by "adjusting monetary policy without hesitation."
Elsewhere, EUR/USD was down 0.30% to 1.3549 from 1.3590 on Friday.
In the euro zone, data on Monday showed that the bloc’s manufacturing purchasing managers’ index rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The pound was trading close to 27-month highs against the dollar, with GBP/USD up 0.15% to 1.6395, after initially rising to session highs of 1.6442.
Demand for sterling continued to be underpinned after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.
The U.K. manufacturing PMI rose to 58.4, the highest level since February 2011, from an upwardly revised 56.5 in October. Analysts had expected a decline to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
The dollar pushed higher against the Swiss franc, with USD/CHF up 0.31% to 0.9089.
The greenback was broadly lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.23% to 0.9129, NZD/USD climbing 0.55% to 0.8179 and USD/CAD up 0.31% to 1.0647.
The Aussie and the kiwi were boosted after data on Monday showed that the final reading of China’s HSBC manufacturing PMI came in at 50.8 for November, slightly above forecasts for 50.5, and beating the flash estimate of 50.4. The index was down slightly from October’s final reading of 50.9.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.22% to 80.85.
During European morning trade, USD/JPY was up 0.28% to 102.73, the highest level since May 23.
The yen remained under pressure on the view that the Bank of Japan will implement further stimulus measures in order to meet its target of 2% inflation by 2015.
Earlier Monday, BoJ Governor Haruhiko Kuroda pledged to counter any new downside risks to the bank’s inflation goal, saying the BoJ would act by "adjusting monetary policy without hesitation."
Elsewhere, EUR/USD was down 0.30% to 1.3549 from 1.3590 on Friday.
In the euro zone, data on Monday showed that the bloc’s manufacturing purchasing managers’ index rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The pound was trading close to 27-month highs against the dollar, with GBP/USD up 0.15% to 1.6395, after initially rising to session highs of 1.6442.
Demand for sterling continued to be underpinned after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.
The U.K. manufacturing PMI rose to 58.4, the highest level since February 2011, from an upwardly revised 56.5 in October. Analysts had expected a decline to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
The dollar pushed higher against the Swiss franc, with USD/CHF up 0.31% to 0.9089.
The greenback was broadly lower against the Australian, New Zealand and Canadian dollars, with AUD/USD rising 0.23% to 0.9129, NZD/USD climbing 0.55% to 0.8179 and USD/CAD up 0.31% to 1.0647.
The Aussie and the kiwi were boosted after data on Monday showed that the final reading of China’s HSBC manufacturing PMI came in at 50.8 for November, slightly above forecasts for 50.5, and beating the flash estimate of 50.4. The index was down slightly from October’s final reading of 50.9.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.22% to 80.85.