The dollar strengthened against the yen for the first time in four days on bets U.S. growth is gathering pace.
The Australian dollar climbed versus Japan’s currency as prospects for a recovery in the world’s largest economy supported demand for higher-yielding assets. The euro weakened against the dollar after Italian Prime Minister Mario Monti said Spain could reignite the region’s debt crisis. Economists said a U.S. report this week will show orders for durable goodsincreased in February.
“The U.S. economy is still relatively outperforming, which is supporting the U.S. dollar for now,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “Investor concerns appear to be rising over Spain.”
The dollar rose 0.5 percent to 82.78 yen at 6:51 a.m. New York time. It appreciated 0.2 percent to $1.3241 against the euro. The 17-nation currency was 0.3 percent stronger at 109.62 yen, after rising as much as 0.5 percent to 109.86. The Australian dollar advanced 0.6 percent to 86.70 yen.
“The market feels almost compelled to sell yen as it has been the main trend in early 2012, although that trend is now flashing reversal signals,” Hardman said.
The dollar gained before a March 28 report that’s projected to show bookings for long-lasting U.S. factory goods rose 3 percent last month, according to the median estimate of economists surveyed by Bloomberg.
Treasuries fell, with the 10-year yield rising five basis points to 2.28 percent….”
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