© Reuters. Dollar extends gains after US data durable goods
Investing.com — The dollar extended gains against the other major currencies on Wednesday after data showing that orders for durable US consumption of goods rebounded in August and investors awaited details of trump-management is the new tax plan.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.52% 93.37 of 09.12 PM ET (13:13 GMT), the highest since August 23.
Durable goods orders rose 1.7% in August from the previous month, the Commerce Department reported, more than economists forecast to rise to 1.0%.
The upbeat data showed a rise in business investment and offset concerns about the potential impact of hurricane Harvey and Irma on growth.
The demand for the dollar was underpinned after Federal Reserve chair Janet Yellen said on Tuesday that the Fed must continue with step interest rate increases, despite the uncertainty about the inflation Outlook.
Higher prices support the dollar, by searching the U.S. currency more attractive to yield-seeking investors.
The dollar was also boosted by the generally weaker euro remained on the defensive in the Wake of Sunday’s Bundestag election results.
EUR/USD was down 0.59% to a five-week low of 1.1722
German Chancellor Angela Merkel won the elections, but the large numbers of voters desert saw their party for the right.
Merkel is now in negotiations months ago, the coalition to try to form a stable government, investors leave worried that the political uncertainty could make it difficult to beat the German economy closer to the euro-zone integration.
The euro against the softer yen, with EUR/JPY rising 0.24% to 132.70.
The dollar rose to the highest level since mid-July against the Japanese currency, the progressive 0.83% 113.17, recovered from Tuesday’s low of 111.49.
Elsewhere, sterling was lower against the stronger dollar, with GBP/USD down 0.5% at 1.3391.
The investors were with a view to the announcement of a tax plan by the trump management, the later in the day, together with a report on U.S. pending home sales.