U.S. Dollar Stronger after Solid Data

The U.S. dollar hit nine-month highs against the euro and rose against a basket of major currencies on Tuesday after strong U.S. housing data bolstered expectations for an earlier-than-expected rate hike from the Federal Reserve.

U.S. housing starts surged 15.7 percent to a seasonally adjusted annual 1.09-million unit pace in July, snapping two straight months of declines, the Commerce Department said on Tuesday. Economists polled by Reuters had expected starts to rise to a 969,000-unit rate last month.

Investors are closely watching for signs of when the U.S. central bank will hike rates from rock-bottom lows, which traders say will boost the dollar by driving investment flows into the United States.

CNBC

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