Bloomberg: Dollar Gains on Speculation U.S. Consumer Confidence Rose, Japan GDP Data

Dec. 9 (Bloomberg) — The dollar strengthened in Asia on
speculation a report today will show U.S. consumer confidence this
month rose to the highest since August, adding to pressure for
further Federal Reserve interest-rate increases.

Higher U.S. rates than in Europe and Japan have helped the
dollar rally

more than 17 percent against the yen and 15 percent
versus the euro this year. The dollar also gained versus the yen
after a government report today showed Japan’s economy grew slower
than first estimated during the third quarter. The U.S. currency
yesterday fell the most in eight days after Japanese and European
policy makers suggested they would raise borrowing costs.

“A strong showing in consumer confidence will lead to dollar
buying, especially after its short-term decline,” said Shigeru
Nakane, a currency sales dealer in Tokyo at Resona Bank Ltd. “It
would reinforce prospects for further U.S. interest-rate hikes.”

The dollar traded at 120.69 yen at 9:44 a.m. in Tokyo from
120.33 yen late yesterday in New York, according to electronic
foreign-exchange dealing system EBS. The U.S. currency was at
$1.1792 per euro from $1.1817.

The dollar will move between 120 yen and 120.90 yen, and
$1.1780 and $1.1850 per euro today, Nakane said.

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