Dollar Gains against Peers after U.S. Manufacturing Activity Expands


Dollar Gains against Peers after U.S. Manufacturing Activity Expands The dollar touched its highest level in seven months versus the yen while Treasuries declined after a report showed that U.S. factory activity rose the most in three years.

The greenback rose 0.8 percent to trade at 105.13 yen as of 12:31 pm New York time and advanced 0.7 percent to $1.6499 per British pound. The yield on the 10-year Treasuries gained six basis points, the fastest pace in at least one month, to 2.41 percent.

U.S. manufacturing grew in August after orders surged at the fastest pace in a decade, fuelling speculation the Federal Reserve will increase interest rates in 2015 sooner than some analysts expect.

“In the U.S. across the board we have had strong data,” Niels Christensen, a Copenhagen-based chief currency strategist at Nordea Bank AB, told Bloomberg News. “That will keep growth momentum going. We have had a positive dollar trend for the past two months. I find it difficult to see this trend is going to disappear in the short term.”

The Institute for Supply Management’s gauge surprisingly rose to 59, the strongest level since March 2011, compared with 57.1 in July and the median estimate of 57 given by economists in a Bloomberg survey. A measure above 50 signals growth.

A report published last week indicated that the economy grew more than earlier estimated in the April-June quarter, as business investments rose the most in over two years. The Labor Department is expected to announce on Friday that U.S. employers boosted their payrolls by at least 200,000 workers in August for the seventh consecutive month. To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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