The U.S. dollar soared to a seven-month high against the yen, while government bonds declined and gold slipped prior to data that analysts expect to show growth in U.S. manufacturing. The currency was up 0.6 percent to 104.93 yen in New York this morning. It gained 0.4 percent to $1.6535 per British pound while yields on 10-year Treasury notes raised four basis points to 2.38 percent, reports Bloomberg.
Niels Christensen, chief currency strategist at Nordea Bank AB in Copenhagen, said, "In the U.S. across the board we have had strong data. That will keep growth momentum going. We have had a positive dollar trend for the past two months. I find it difficult to see this trend is going to disappear in the short term," according to Bloomberg.
In recent months the dollar has shown consecutive gains as economic data showed an improving U.S. economy, which boosted consumer confidence to better labor market conditions. According to The Wall Street Journal, the U.S. Federal Reserve officials hinted late last month that they were headed toward an end to their extraordinary monetary stimulus by October, a method called quantitative easing. This step is seen as a precursor to increasing benchmark rates.
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