Dollar Revives Rally on Domestic Data

The dollar gained today versus most of the 16 main traded currencies paring yesterday’s losses as demand for assets in the U.S. rose after several better than expected figures came out in reports published in the U.S., evidencing that the economic recovery in the country is accelerating.

The greenback touched the highest level in two weeks versus the Japanese yen and erased the euro’s advance from the beginning of the week after manufacturing and housing reports published today brought optimism towards the U.S. economy, allowing the dollar to be the best performer in foreign-exchange markets today. The euro returned to its losing trend related to the Greek crisis as EU officials are not willing to promote a financial bailout to the southern European nation, suggesting that the budget deficit crisis will continue to influence the euro, which is again near the lowest level in 2010 versus the greenback.

The economic data in the U.S. is, for the moment, among the most positive available for traders to inject capital, as the Eurozone and Japan are still facing consequences from last year’s recession. The dollar may rally further versus these currencies as long as the economic growth continue dynamic and sustainable.

EUR/USD traded at 1.3624 as of 17:12 GMT from a previous intraday rate of 1.3752. USD/JPY is at 90.74 from 90.23.

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