Forex ­dollar rises to its highest against the yen after strong u.s. data

Forex ­dollar rises to its highest against the yen after strong u.s. data

The dollar rose against the yen during trading on Monday traded near the highest rate in 12 years after upbeat u.s. economic reports on manufacturing activity and construction spending. The USD/JPY rose to the highest price of the session when 124.34, not far from the highest price in 12 years by 124.45 record set last Thursday, up from 124.02 just before the data around. The dollar rose after the Institute for supply management manufacturing index for may major acceleration in addition to the new orders and employment alike. Index of manufacturing activity rose to 52.8 from 51.5 in April while expectations for registering 52.0. Index of recruitment from 48.3 in April to 51.7 in March, while new orders rose 53, 5 to 55, 8. Another report showed that u.s. construction spending rose to its highest level in six and a half years in April, adding to signs that the economy is recovering after its decline in the first quarter.

 The Commerce Department reported that construction spending rose by 2.2% to an annual rate of 1.0 trillion dollars, the highest level since November 2008. Earlier in the day, the official data showed that consumer spending in the United States was without change unexpectedly in April after increasing 0.5 percent in March. Demand for the dollar remained supported by expectations of interest rate from the Federal Reserve Board later this year.

Aurtva the dollar also slipped against the euro, with the euro/dollar rate of 0.73% to 1.0908. 

The single currency continued to face selling pressure amid fears Greece’s inability to pay the debt which heavier on morale.

 The Greece to pay 305 million euros to the International Monetary Fund on 5 June. And fears of possible shortages after Athens warned last month that it would not be able to repay, if no agreement was reached on the cash transaction versus economic reforms with international creditors by then. 

The Greece to pay 305 million euros to the International Monetary Fund on 5 June. At the same time, Monday’s data showed that the manufacturing sector in the euro area recorded a modest growth for the month of May.

 And purchasing managers index hit 52.2 unchanged for the final reading for the month of March, the highest level in 10 months, but down slightly from the initial estimate of 52.3. Still weak in key economies in the region continues, the decline of the manufacturing sector in France and Germany recorded modest growth. Also, the dollar index, which measures the dollar against a basket of six major currencies rose 0.66% to 97.59, not far from the highest price in five weeks and day 17 h last when 97.88.  

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Forex­dollar rises to its highest against the yen after strong u.s. data