Dollar continues to rally in APAC

SINGAPORE (Reuters) – The dollar hit a two-week high versus the yen on Thursday, extending its gains after strong U.S. economic data bolstered expectations for a solid U.S. jobs report later this week.

The dollar rose to as high as 110.545 yen, its strongest level since Aug. 16. It last changed hands at 110.51 yen, up 0.2 percent from late U.S. trade on Wednesday.

The greenback gained a lift after the Commerce Department said on Wednesday that its second estimate of U.S. gross domestic product showed that the economy grew at an annual 3.0 percent annual in the second quarter, the quickest in more than two years.

In addition, the ADP National Employment Report showed U.S. private-sector employers hired 237,000 workers in August for the biggest monthly increase in five months, driving expectations for a solid U.S. August non-farm payrolls figure.

In the wake of such solid economic indicators, market expectations for the chances of a Fed rate hike in December may start to increase and support the dollar, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.

“I think the market is starting to think that eventually, the wage growth component is going to start to kick in,” Innes said, adding that the dollar may attract demand ahead of the U.S. nonfarm payrolls data due on Friday.

Reuters

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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