The dollar headed for its longest stretch of gains versus the yen in more than 12 years after the U.S. economy rebounded more strongly than economists forecast.
The greenback was set for the biggest monthly advance in more than a year versus major peers after Treasury 10-year yields touched a two-week high yesterday, with analysts predicting data tomorrow will show employers boosted payrolls. Australia’s dollar was 0.2 percent from an eight-week low before data that may indicate building approvals stalled.
“The tide has turned in the markets after the GDP data, with long-term U.S. yields finally rising again and increasing the momentum for dollar buying,” said Naohiro Nomoto, an associate for foreign-exchange trading at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Investors have priced in a strong payrolls report.”
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, was little changed at 1,020.57 as of 9:08 a.m. in Tokyo. It has climbed 1.7 percent this month, poised for the biggest advance since May 2013.
The dollar added 0.1 percent to 102.84 yen, heading for a 10th day of gains that would be the longest since December 2001. It has climbed 1.5 percent this month, the biggest advance among Group of 10 currency peers. It was little changed at $1.3396 per euro after touching $1.3367 yesterday, the strongest since Nov. 12. The greenback has risen 2.2 percent since June 30 versus its European counterpart.
The yield on U.S. government debt due in a decade touched 2.56 percent yesterday, the highest since July 16, after government data showed gross domestic product growth rebounded to a 4 percent pace last quarter, beating the median forecast for 3 percent in a survey of analysts by Bloomberg News.
By Kristine Aquino and Kevin Buckland Jul 31, 2014 8:13 AM GMT+0800 1 hour ago - View -