The US dollar on Wednesday emerged stronger at the stock market by hitting almost nine months high against major currencies on upbeat US data due to the firm economic growth in the third quarter.
The dollar reached to its strongest level against the euro as the US economy continued to bolster as rising tensions in Ukraine encouraged the appeal of American assets.
“You’ve got to stick with the dollar… Ukraine is back in focus as something that could have a fairly negative impact on growth. America is in a far better shape and the dollar’s historic link with periods of uncertainty and risk is second to none. So, that is where investors would go,” said Derek Halpenny, the head of global-markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London.
As of 8:24 am, the US dollar grew 0.2 percent to USD 1.3349 against euro. The US currency slipped 0.2 percent to 102.34 yen and the euro declined 0.4 percent to 136.63 yen.
Meanwhile, the data on Tuesday showed the US services sector activity at strongest level at an eight and half year high last month, while the factory orders also witnessed a surge in June.
Michael Woodfolk, global markets strategist at BNY Mellon, said, “While it is clearly the lesser of the two ISMs, an 8-year high coupled with a blockbuster factory orders report will go a long way towards bolstering growth expectations for the second half of 2014.”
Meanwhile, the yen grew against its all 31 major competitors after NATO announced that risk of Russia sending troops into Ukraine prevails. Most Asian currencies also fell on the forex.