Investing.com - The broadly stronger dollar rose to one-month highs against the yen on Tuesday as market sentiment strengthened, dampening investor demand for the traditional safe haven yen.
USD/JPY hit 99.69 during late Asian trade, the highest since August 2; the pair subsequently consolidated at 99.52, rising 0.20%.
The pair was likely to find support at 98.26, Monday’s low and resistance at 99.93, the high of August 2.
The outlook for the global recovery was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August, while a separate report showed that manufacturing activity in the U.K. jumped to a 30-month high.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
Demand for the dollar was underpinned by expectations that the Federal Reserve will 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 yen was steady against the euro, with EUR/JPY inching up 0.03% to 131.08.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.
USD/JPY hit 99.69 during late Asian trade, the highest since August 2; the pair subsequently consolidated at 99.52, rising 0.20%.
The pair was likely to find support at 98.26, Monday’s low and resistance at 99.93, the high of August 2.
The outlook for the global recovery was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August, while a separate report showed that manufacturing activity in the U.K. jumped to a 30-month high.
In the euro zone, data showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011.
Demand for the dollar was underpinned by expectations that the Federal Reserve will 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 yen was steady against the euro, with EUR/JPY inching up 0.03% to 131.08.
The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Tuesday.