Dollar pushes towards 110 yen in Asia


AFP

TOKYO–The dollar rose Monday after data showed the U.S. economy grew more than first thought in April-June, while it hit a six-month high against the Hong Kong dollar after weekend unrest in the southern Chinese city. Analysts said the U.S. unit would break the 110 yen threshold “sooner or later” as the U.S. economy gets back on track. The greenback bought 109.40 yen in Tokyo on Monday, up from 109.28 yen in New York. The single European currency was trading at US$1.2678, down from US$1.2683 in U.S. trade on Friday, and at 138.69 yen against 138.60 yen. Traders moved into the dollar after the Commerce Department said the U.S. economy grew 4.6 percent in the second quarter, better than the previous 4.2 percent estimate. The figure represents a strong rebound from the first quarter’s 2.1 percent contraction, which was blamed in part on unusually severe winter weather that hit the country With strong appetite for the dollar among investors, the greenback may break 110 yen before the release of U.S. jobs data on Friday, Nomura Securities chief FX strategist Yunosuke Ikeda said in a morning note. If the jobs data is positive, the pair may go up even higher, dealers said.