Dollar Surges after Report Shows U.S. Economy Grew Faster than Estimated


Dollar Surges after Report Shows U.S. Economy Grew Faster than EstimatedThe dollar advanced for the sixth consecutive day after revised data indicated that U.S. economy grew faster than previously estimated, fuelling speculation the Federal Reserve may raise borrowing costs soon. The yen fell on speculation the Japanese government will facilitate changes that will ensure the country’s $1.2 trillion pension fund can purchase more global assets.

The yen fell 0.6 percent to trade at 109.41 per dollar after dropping to 109.46 on Sept. 19, its lowest level since August 2008. The dollar advanced 0.5 percent to $1.2682 per euro and touched $1.2677, its highest level since November 2012. The yen remained slightly unchanged at 138.76 per euro.

“The dollar is a ball of momentum at this point,” Andrew Wilkinson, a Greenwich, Connecticut-based chief market analyst at Interactive Brokers LLC, told Bloomberg News. “The Fed is going to be the story of next year if it already isn’t. That’s really the catalyst behind the dollar’s behavior at the moment, and everything else is suffering at its hands.”

U.S. gross domestic product appreciated by a revised 4.6 percent in the three months to June, the most since the fourth quarter of 2011, rather than the prior estimate of 4.2 percent, reported the Commerce Department on Friday.

Yields on the 10-year notes rose by 0.05 percentage point, or five basis points, to 2.55 percent. The yield on the 30-year Treasuries surged four basis points to 3.25 percent.

The ruble fell to a record-low versus the dollar after Russian prosecutors applied to return oil firm OAO Bashneft to state ownership.  OAO Bashneft is owned by Vladimir Evtushenkov, who is currently under house arrest due to money laundering charges. The ruble fell 1.8 percent to 39.1920 per dollar. To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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