Investing.com - The dollar gained against the yen in Asia on Friday with prospects for a Fed rate hike well anchored in the market after data and top policymaker comments in the U.S.
USD/JPY changed hands at 110.23, up 0.10%, while AUD/USD traded at 0.7404, down 0.04%. Investors are currently pricing 95.4% chance of a rate hike at the Fed's December 13-14 meeting, according to Investing.com's Fed Rate Monitor Tool.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 101.00
Overnight, the dollar edged up and hovered close to a fresh 14-year peak against the other majors currencies on Thursday, as strong U.S. data continued to boost optimism over the strength of the economy.
The U.S. Department of Labor said initial jobless claims in the week ending November 12 fell by 19,000 to 235,000, the lowest level since 1973. Analysts expected jobless claims to rise by 3,000 to 257,000 last week.
Separately, the Commerce Department said housing starts surged 25% in October to hit 1.323 million units, while building permits rose 0.3% to 1.229 million units.
Data also showed that U.S. consumer prices rose 0.4% in October, in line with expectations. Year-over-year, consumer prices increased by 1.6% last month, its highest reading since October 2014.
The upbeat data added to optimism over the strength of the U.S. economy and fueled further expectations for a December rate hike by the Federal Reserve.
Earlier in the day, Fed Chair Janet Yellen warned of the danger of waiting too long to tighten monetary policy. The comments came a day after Philadelphia Fed head Patrick Harker said that he was in favor of raising interest rates, while Cleveland Fed President Loretta Mester said the Fed must not overreact to market moves following the shock result of the presidential election.