Forex — Dollar Ticks Higher In Early Asia, Japan, The Wages

© Reuters. Dollar gains in Asia The dollar ticked higher against the yen in early Asia on Friday with wage data in an otherwise thin data day.

USD/JPY changed hands at 112.83, up 0.02%, while AUD/USD traded 0.7793, down 0.04%

Japan reports average cash earnings with a 0.5% gain expected. Markets are closed in South Korea and China.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, last quoted at 93.77, up from 0.49%.

Overnight, the dollar extended gains and again approached the last one-and-a-half-month highs added against other major currencies on Thursday, as a string of upbeat US data and optimism over the strength of the economy and in the midst of the fresh hopes for a December interest rate increase.

The greenback strengthened after the U.S. Department of labor said initial claims for unemployment benefits fell more than expected to a deficit of 260,000 last week. Further reports showed that the US trade deficit narrowed in August as exports rose to a two-and-a-half-year high, while factory orders rose more than analysts had expected.

The dollar was also said intensified after the Philadelphia Federal Reserve Bank President Patrick Harker on Thursday that he is still in the planning on a further interest rate increase this year and three next year.

«I still have increases in three of the interest rate in the next year, but we will see how the dynamics play out,» said Harker, speaking on the sidelines of a conference in Austin, Texas.

The euro weakened after the minutes of the European Central Bank, the September meeting showed that members remain concerned about the volatility of the currency, and some suggested that the economy may need major stimulus for a longer period of time.

The common currency was already fragile, after the regional government of Catalonia has announced on Wednesday that they declare independence from Spain on Monday, adding to tensions in the region.

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