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**Glanteeignile** · 03-15-2012, 09:45 AM

Dollar Touches 11-Month High Against Yen on U.S. Recovery

The dollar rose to an 11-month high against the yen before U.S. data today forecast to show regional manufacturing expanded and initial jobless claims decreased, adding to signs the American economy is gathering momentum.

The greenback was near the highest level in four weeks against the euro amid reduced bets the Federal Reserve will begin a third round of bond purchases, or quantitative easing, which could debase the world’s reserve currency. The yen declined against most its major counterparts as Asian stocks advanced for a third day, curbing demand for the lower-yielding Japanese currency.

“We’re seeing a shift in trend to dollar buying across the board,” said Junichi Ishikawa, an analyst in Tokyo at IG Markets Securities Ltd. “Should U.S. economic data continue to come in firm, it will support the market’s view that the Fed doesn’t need QE3.”

The dollar touched 84.15 yen, the highest level since April 13, before trading at 84.13 yen at 10:19 a.m. in Tokyo, 0.5 percent above yesterday’s close in New York. The U.S. currency rose 0.2 percent to $1.3007 per euro. It earlier climbed as high as $1.3037, the strongest since Feb. 16. The yen dropped 0.3 percent to 109.41 per euro, after earlier touching 109.45, the weakest since Feb. 27.

The MSCI Asia Pacific Index of shares gained 0.1 percent today, after the gauge rose 0.9 percent over the previous two days.

U.S. Manufacturing
The Federal Reserve Bank of New York’s general economic index probably slid to 17.5 this month from 19.5 in February, according to the median estimate of economists in a Bloomberg News survey. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. A gauge of manufacturing in the Philadelphia region increased to 12 in March, the highest since April, another poll indicates. Both Fed reports are due today.

The Labor Department may say today the number of initial applications by Americans for jobless benefits fell by 5,000 to 357,000 in the week ended March 10, according to economists surveyed by Bloomberg.

The Federal Open Market Committee said March 13 it expects “moderate economic growth” and predicted the U.S. unemployment rate “will decline gradually.”

03-15-2012, 09:45 AM	#4
Glanteeignile Join Date Oct 2005 Posts 565 Senior Member	Dollar Touches 11-Month High Against Yen on U.S. Recovery The dollar rose to an 11-month high against the yen before U.S. data today forecast to show regional manufacturing expanded and initial jobless claims decreased, adding to signs the American economy is gathering momentum. The greenback was near the highest level in four weeks against the euro amid reduced bets the Federal Reserve will begin a third round of bond purchases, or quantitative easing, which could debase the world’s reserve currency. The yen declined against most its major counterparts as Asian stocks advanced for a third day, curbing demand for the lower-yielding Japanese currency. “We’re seeing a shift in trend to dollar buying across the board,” said Junichi Ishikawa, an analyst in Tokyo at IG Markets Securities Ltd. “Should U.S. economic data continue to come in firm, it will support the market’s view that the Fed doesn’t need QE3.” The dollar touched 84.15 yen, the highest level since April 13, before trading at 84.13 yen at 10:19 a.m. in Tokyo, 0.5 percent above yesterday’s close in New York. The U.S. currency rose 0.2 percent to $1.3007 per euro. It earlier climbed as high as $1.3037, the strongest since Feb. 16. The yen dropped 0.3 percent to 109.41 per euro, after earlier touching 109.45, the weakest since Feb. 27. The MSCI Asia Pacific Index of shares gained 0.1 percent today, after the gauge rose 0.9 percent over the previous two days. U.S. Manufacturing The Federal Reserve Bank of New York’s general economic index probably slid to 17.5 this month from 19.5 in February, according to the median estimate of economists in a Bloomberg News survey. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. A gauge of manufacturing in the Philadelphia region increased to 12 in March, the highest since April, another poll indicates. Both Fed reports are due today. The Labor Department may say today the number of initial applications by Americans for jobless benefits fell by 5,000 to 357,000 in the week ended March 10, according to economists surveyed by Bloomberg. The Federal Open Market Committee said March 13 it expects “moderate economic growth” and predicted the U.S. unemployment rate “will decline gradually.”
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