Dollar firms on encouraging US data
The dollar advanced against other major currencies on encouraging US data.
NEW YORK (AFP) - The dollar advanced against other major currencies after a stronger than expected US construction spending report and solid US automobile and online sales.
Investors had a batch of encouraging US news that supported the notion of the world s largest economy doing decidedly better than many of its rivals. Construction spending rose 1.1 percent in October, almost double the consensus estimate.
Automakers sold 1.3 million vehicles in the US in November, about 4.6 percent more than the year-ago period, according to industry specialist AutoData.
And online sales on "Cyber Monday" -- part of the kickoff of the year-end holiday shopping season -- were up 16 percent from 2013, according to the Adobe 2014 Digital Index.
Art Hogan, chief market strategist at Wunderlich Securities, said the latest data confirmed that "the US economy seems to be leading" global growth.
The yen was under pressure after Moody s on Monday lowered the credit rating on Japan s sovereign debt and five Japanese commercial banks. The dollar peaked at 119.29 yen around 1505 GMT, the highest level since early August 2007.
The euro, meanwhile, slipped against the dollar, yen and pound as the market awaited Thursday s European Central Bank monetary policy meeting.
"Thursday could be a watershed event since the central bank is expected to deliver fresh economic forecasts which could bring it a step closer to deploying stronger, euro-weakening stimulus," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"Many expect the ECB to keep its limited powder dry this week but it could set the stage for action during the opening quarter of 2015."
