Investing.com - The dollar climbed to two-week highs against the yen on Wednesday as upbeat economic reports from Australia and the U.S. eased concerns over slowing global growth.
USD/JPY advanced 0.35% to 114.43, the highest level since February 17.
Risk appetite was boosted after data overnight showing that Australia’s economy grew at the fastest pace in almost two years last quarter, with gross domestic product expanding 0.6%.
That propelled overall growth for 2015 to 3.0%, well above the 2.5% expected by economists and the country’s central bank.
The report came a day after data showing that Canada’s economy grew by a far larger than forecast 0.8% in the three months to December.
In the U.S., data on Tuesday showed that the Institute for Supply Management's manufacturing index rose more than expected last month.
In addition, U.S construction spending rose to the highest level since October 2007, in January, indicating that the economy is regaining momentum after slowing in the fourth quarter.
The reports underlined expectations that the Federal Reserve will hike interest rates again this year.
The safe haven yen was also weaker against the euro, with EUR/JPY rising 0.27% to 124.24, off the almost three-year lows of 122.05 struck on Tuesday.
The single currency was struggling near one-month lows against the dollar, with EUR/USD at 1.0861.
The euro remained under pressure after weak euro zone inflation and factory data earlier in the week cemented expectations for more easing by the European Central Bank at its upcoming meeting on March 10.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady near one-month highs at 98.47.