The dollar was 0.2 percent from its strongest level versus the yen in more than six months as investors weigh whether signs of a strengthening economy will be enough for the Federal Reserve to reduce stimulus.
The Bloomberg U.S. Dollar Index closed yesterday at the highest in more than two months after a report showed manufacturing unexpectedly accelerated in November at the fastest pace since April 2011. A private survey tomorrow may show employers in the U.S. boosted jobs last month by the most since June, while separate figures may indicate a continued expansion in services. Australia’s dollar traded near a five-year low versus its New Zealand counterpart as the larger nation’s Reserve Bank holds a policy meeting today.
“While the U.S. data continue to print better, the dollar will be supported,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc. in New York. “There’s a view in the market that the Fed might taper in December.”