The dollar has climbed to two-month high in opposition to the yen today after an assessment of service-sector growth published by the Institute for Supply Management climbed to its highest level in a decade. The dollar is up 0.6% to ¥124.90 at last check, in comparison with ¥124.30 yesterday afternoon in New York. Meanwhile, the euro is down 0.3% to $1.0857, falling from $1.0892 yesterday. The ICE U.S. Dollar Index is up 0.2% to 98.1270.
The gains for the USD begun after a few hours of choppy trading during which the dollar shed its gains from yesterday’s session following a round of disappointing economic data that included a weaker than anticipated reading on private-sector job growth and comments coming from Federal Reserve Gov. Jerome Powell, who down-played the odds that the Fed will increase its benchmark interest rate next month.
Although the British pound and Canadian dollar shed some of their earlier gains versus the dollar following the release of the ISM report, both continue to outperform today. Some market strategists are attributing the pound’s gains to positive investor sentiment in advance of a the Bank of England meeting which will be held tomorrow.
The Canadian dollar climbed after data revealed that Canada’s trade deficit fell to 480 million Canadian dollars, far exceeding reading that economists were expecting. Climbing crude-oil prices are also providing support for the loonie.