US dollar rises with a boost from strong US data

US dollar rose today, Friday, and is heading for gains for the third month in a row after data showed strong growth in the United States, which indicates enhanced possibilities for interest rates to remain high for a longer period. But the yen remained around the 150 level to the dollar before the Bank of Japan meeting next week

According to Reuters, yesterday’s data showed that the US economy grew in the third quarter at the fastest pace in nearly two years, as rising wages as a result of a strong labor market contributed to boosting consumer spending.

With the issuance of new surveys that also showed the strength of business activities as well, expectations increased that the Federal Reserve Bank (the US Central Bank) would continue to tighten monetary policy for a longer period, which pushed the dollar to rise significantly this week.

The dollar index settled at 106.52 after reaching the highest level in 3 weeks at 106.89 in the previous session, and is heading for weekly gains of about 0.35%.

The euro had difficulty achieving gains and settled at $1.0559, on its way to recording a weekly loss of 0.25 percent.

The European Central Bank decided on Thursday to keep interest rates unchanged as expected, ending an unprecedented series that included 10 consecutive increases in interest rates.

Data earlier this week showed a sudden decline in business activity in the euro zone this month

The British pound fell 0.1% to $1.2117, which is slightly higher than the lowest level in 3 weeks recorded today, Thursday, at $1.2070.

The Australian dollar rose 0.4 percent to $0.635 after falling to the lowest level in a year at $0.6271 on Thursday.

The Japanese yen continued to fluctuate on the weak side at 150 to the dollar, a level that some say may lead to intervention by the Japanese authorities.