Dollar up on positive economic data

Published: 30 Aug at 9 AM Tags: Euro, Dollar,

Positive economic data coming out of the US has helped the dollar to remain steady close to its highest level in almost four weeks. Having reached a high of 98.48 yen, the greenback eased 0.1 per cent to 98.26 yen. The Japanese currency is being buoyed by Japanese exporters’ month-end flows.

Following a sell-off of Asian currencies earlier in the week the Indonesian rupiah and the Indian rupee have managed to claw back some ground. The relative calm means there has not been an overwhelming demand for the safe haven yen.

Jitters on the markets have also been calmed after the UK parliament said it could not become involved in military action in Syria. Tensions have been riding high following the chemical weapons attack on Syrian civilians last week now widely believed to have been ordered by President Bashar al-Assad.

Figures for economic growth in the US during the second-quarter of the year have been revised up helping to keep the dollar index steady at 81.955. The statistics also make it more likely that the Federal Reserve will push ahead with drawing in its massive bond buying programme.

The euro is also remaining steady at $1.3243 following Thursday’s dip to $1.3219. Emerging market currencies have managed to rise off recent lows after central banks moved to defend them.