Dollar hits multi-month highs in Asia


TOKYO: The dollar hit multi-month highs against the euro and yen in Asia on Wednesday after an increase in housing construction in the United States boosted optimism about the state of the economy world number one.

In afternoon trade in Tokyo, the dollar rose to 103.23 yen at one stage, its highest level in four months, and so from 102.91 in New York.

The euro weakened to a nine-month low of $ 1.3303 from $ 1.3321 in trading United States, while strengthening to 137.29 yen against 137.07 yen.

In other contributions, the British pound fell to a low of $ 1.6602, its lowest level since April.

Traders moved out of the yen – seen as a safe haven currency in times of crisis – after upbeat data from the United States and as investor concerns about a clash between Russia and Ukraine decreased.

Housing construction in the world’s largest economy rose 15.7 percent in July to its highest level since November of last year’s level, while new building permits rose 8.1 percent.

The figures could raise hopes of a rise in interest rates between the United States and ahead of schedule, which tends to boost the dollar.

Relieve geopolitical jitters, Russian President Vladimir Putin and his Ukrainian counterpart will meet next week for the first time in two months. The meeting also involved senior officials from the European Union.

The dollar rally also took place before the publication of the minutes of the last meeting of the Federal Open Market Committee’s monetary policy Wednesday.

Analysts pore over the minutes for signs of whether the Fed could accelerate the timeline to raise rates now expected in the second half of 2015.

Investors were also looking to the opening remarks of the president of the Federal Reserve, Janet Yellen, the annual economic conference of the central bank.

The yen losses may also have been driven by mediocre Japanese trade data released on Wednesday.

The report came a week after the second-quarter economic growth suffered its biggest contraction in three years after a tax increase in April sales growth dented.

“With a number of Japanese economic indicators have deteriorated markedly in the past two months, economists have become more cautious in its outlook Japan,” said Credit Agricole.

“So too have made investors watching the probability they assign to alleviate further BoJ increased steadily in recent weeks.”

Further easing measures by the Central Bank would tend to weaken the yen.

The dollar was mostly stronger against foreign currencies from Asia and the Pacific.

He rose to $ 1.2480 from Sg $ 1.2443 SG on Tuesday to 31.91 Thai baht from 31.84 baht, Indonesian rupiah and 11701.50 11675.10 rupees.

The dollar also rose to 1,022.54 South Korean won from 1,017.58 won, and 43.81 Philippine pesos from 43.68 pesos.

He fell to 60.73 Indian rupees to 60.74 rupees, while it remained unchanged at Tw $ 29.98.

The Australian dollar fell to 92.98 cents from 93.36 cents, while the Chinese yuan rose to 16.79 yen from 16.69 yen

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