The dollar rose against the yen and reduced losses versus the euro on Thursday. U.S. data showed that growth in the world’s largest economy was stronger than expected in the fourth quarter.
Prior to the data, the dollar index, a measure of the greenback’s value against six major currencies, had fallen to a three-week trough.
According to the Commerce Department report, U.S. gross domestic product increased at a 2.6% annualized rate in the fourth quarter. Economists had been expecting growth of just 2.3%. The economy grew 2.9% in 2018, the best performance since 2015 and better than the 2.2% logged in 2017.
In morning trading, the dollar index was little changed at 96.091 after earlier sliding to a three-week low. Traders said some of its weakness was caused by month-end selling after a strong month for risky assets.
Against the yen, the dollar rose 0.1 percent to 111.05 yen, turning positive after the U.S. GDP data.
START TRADINGForex – Commodities – Dollar rose against the Yen after US data
The euro, meanwhile, was up 0.1 percent at $1.1383, paring gains that took it to a three-week high. Core European bond yields hit a three-week high on Wednesday. A broad indicator of European economic data ticked higher, rising from an eight-month low hit last month, suggesting the near-term economic outlook may be improving.
Sterling eases as investors book profits from this week’s surge. The British pound pulled back from recent highs on Thursday as investors booked profits. Traders assessed the continued uncertainty about when the United Kingdom will leave the European Union and on what terms.
Sterling touched its highest since September, $1.3351 versus the dollar, on Wednesday and a 21-month high of 85.295 pence per euro. It is up more than 4% against both currencies so far in 2019.
On Thursday, the British currency slipped 0.2% to $1.3291. The losses were slightly larger against the euro, bringing sterling 0.3% lower to 85.64 pence.
Oil dips as trade talks drag, China’s economy shows weakness. Brent crude was down 37 cents, or 0.6%, at $66.02 a barrel by 1225 GMT. U.S. West Texas Intermediate (WTI) crude was down 13 cents, or 0.2%, at $56.81.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.