FOREX-Dollar stands tall on stronger U.S. data, hits fresh 8 month-high vs yen

Published 17/01/2020, 02:14
© Reuters.  FOREX-Dollar stands tall on stronger U.S. data, hits fresh 8 month-high vs yen
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(Adds FOREX tag to headline)

* U.S. data point to moderate economic growth, tighter jobs

market

* Chinese GDP, other key data due 0200 GMT Friday

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Tomo Uetake

TOKYO, Jan 17 (Reuters) - The dollar gained on Friday as

U.S. data suggested the world's largest economy maintained a

moderate growth pace at the end of 2019, reaching an eight-month

peak against the safe-haven yen.

U.S. retail sales increased for a third straight month in

December and the number of Americans filing claims for

unemployment benefits dropped for a fifth straight week last

week, indicating the labour market remained strong.

Other data showed a gauge of manufacturing activity in the

U.S. Mid-Atlantic region rebounded in January to its highest in

eight months, leading the Federal Reserve Bank of Philadelphia

to call the factory outlook the brightest in more than 18

months. "Consumers opened the throttle and took more shopping trips

to the malls across America, which ensures GDP growth will be

comfortably above 2 percent in the fourth quarter," said Chris

Rupkey, chief financial economist at MUFG Union Bank. "There's

nothing limiting this economic expansion."

The dollar rose to as high as 110.24 yen JPY= versus the

Japanese currency, its highest level since late May in 2019.

"A lift in U.S. Treasury yields, a firmer U.S. dollar and

record highs in many global equity markets have encouraged the

dollar/yen higher," said Richard Grace, chief currency

strategist at Commonwealth Bank of Australia (CBA) in Sydney.

The dollar index, which tracks the greenback's strength

against a basket of six major currencies, last stood at 97.308,

up 0.1% on the day. The euro barely moved at $1.1137 EUR= .

The Australian dollar gained to as high as $0.69335

AUD=D4 , its 1-1/2-week high of $0.6897 overnight and was last

traded at $0.6897.

Looking ahead, the Aussie currency will likely take some

modest guidance from upcoming Chinese fourth-quarter gross

domestic product report, CBA's Grace added, although he doesn't

expect the Aussie dollar to break its recent range of $0.6934 to

$0.6870.

China will release its GDP figures later in the day (0200

GMT), along with December factory output, retail sales and

fixed-asset investment.

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