Dollar shines as US economy outperforms, yen plumbs 10-month low
yen to a 10-month trough on Thursday and kept the euro and sterling pinned near three-month lows, as investors placed their faith in a still-resilient U.S. economy even amid a dour global growth outlook.
The greenback scaled a fresh top of 147.865 yen in early Asia trade, its highest since last November.
Against a basket of currencies, the dollar was last 0.05% higher at 104.91, holding on to some of its gains from the previous session after scaling a six-month peak on news that the U.S.
services sector unexpectedly gained steam in August.
The stronger-than-expected data pushed the euro to its lowest since June at $1.0703 on Wednesday, with the single currency last 0.03% lower at $1.0723.
Sterling similarly lost 0.07% to stand at $1.24985, having also bottomed at a three-month trough of $1.24835 in the previous session.
«It certainly was a good (ISM)… so those thinking of a (U.S.) recession in the near term might be a little bit disappointed,» said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia (CBA). «However, the Beige Book… wasn't that great, actually.»
U.S.
economic growth was «modest» in recent weeks, job growth was «subdued,» and inflation slowed in most parts of the country, the Federal Reserve report published on Wednesday showed.
«I think that what's really driving the dollar is not so much that the U.S. economy is doing great, but it's doing better than elsewhere.»
Market pricing shows a near 47% chance that the Fed might deliver another rate hike in November, according to the CME FedWatch tool, though expectations are for policymakers to keep rates on hold later this month.
Conversely, Bank of England (BoE) Governor Andrew Bailey said on Wednesday that the
