Investing.com - The dollar rose to fresh session highs against the yen on Tuesday after data showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August.
During U.S. morning trade, the dollar rose to its highest since August 2 against the yen, with USD/JPY up 0.45% to 99.77.
The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected a reading of 54.0.
The upbeat data reinforced the view that the Federal Reserve could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The data came one day after a series of reports from China, the U.K. and the euro zone pointed to a pick-up in global manufacturing, bolstering the outlook for a broad based global recovery.
The dollar briefly erased gains against the yen earlier Tuesday after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S. as tensions over Syria continued.
The dollar was close to six-week highs against the euro, with EUR/USD sliding 0.24% to 1.3162.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The dollar pushed higher against the pound, with GBP/USD slipping 0.09% to 1.5531, after rising as high as 1.5602 earlier in the day.
Sterling advanced to one week highs after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
The U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3. The data fuelled expectations that the Bank of England could raise interest rates sooner than it has indicated.
The dollar was higher against the Swiss franc, with USD/CHF up 0.35% to 0.9377.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.90% to 0.9058, NZD/USD dipping 0.08% to 0.7803 and USD/CAD inching down 0.04% to 1.0546.
The Australian dollar found support after the Reserve Bank of Australia left rates on hold at 2.5% on Tuesday and said that it would continue to assess the outlook and adjust policy as needed.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.24% to 82.50.
During U.S. morning trade, the dollar rose to its highest since August 2 against the yen, with USD/JPY up 0.45% to 99.77.
The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected a reading of 54.0.
The upbeat data reinforced the view that the Federal Reserve could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The data came one day after a series of reports from China, the U.K. and the euro zone pointed to a pick-up in global manufacturing, bolstering the outlook for a broad based global recovery.
The dollar briefly erased gains against the yen earlier Tuesday after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S. as tensions over Syria continued.
The dollar was close to six-week highs against the euro, with EUR/USD sliding 0.24% to 1.3162.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The dollar pushed higher against the pound, with GBP/USD slipping 0.09% to 1.5531, after rising as high as 1.5602 earlier in the day.
Sterling advanced to one week highs after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
The U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3. The data fuelled expectations that the Bank of England could raise interest rates sooner than it has indicated.
The dollar was higher against the Swiss franc, with USD/CHF up 0.35% to 0.9377.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD advancing 0.90% to 0.9058, NZD/USD dipping 0.08% to 0.7803 and USD/CAD inching down 0.04% to 1.0546.
The Australian dollar found support after the Reserve Bank of Australia left rates on hold at 2.5% on Tuesday and said that it would continue to assess the outlook and adjust policy as needed.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.24% to 82.50.