Investing.com - The broadly firmer U.S. dollar hit its highest level in two weeks against the yen on Thursday, extending gains after data showing that U.S. economic growth was stronger than expected in the second quarter.
USD/JPY hit a high of 110.62, the most since August 16 and was at 110.44 by 03:12 AM ET (07:12 GMT), up 0.21% for the day.
The dollar was boosted after the Commerce Department reported Wednesday that the U.S. economy grew by an annualized 3% in the second quarter, up from an initial estimate of 2.6%.
Another report showed that the U.S. private sector added a larger-than-forecast 237,000 jobs in August, the largest monthly increase in five months.
The upbeat data bolstered expectations for a solid U.S. jobs report later this week.
A solid jobs report would help underline the Federal Reserve’s case for raising interest rates again this year.
Diminished expectations for a third rate hike this year have weighed on the dollar by making U.S. assets less attractive to yield-seeking investors.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.84, having rebounded from Tuesday’s low of 91.55, the weakest since January 2015.
The euro was a touch higher, with EUR/USD edging up 0.1% to 1.1894 having retreated from Tuesday’s highs of 1.2069, the strongest level since Jan. 2 2015.
Hopes that the European Central Bank will soon announce plans to taper its bond-buying stimulus program have driven the euro up around 13% against the dollar so far this year.
Sterling was little changed against the greenback, with GBP/USD at 1.2915.