(Reuters) The dollar climbed on Wednesday, nearing a 3 1/2-month high against the yen, as investor optimism about the greenback rose ahead of major announcements on U.S. fiscal and monetary policy after strong economic data.
The ADP number was the latest in a string of strong data releases on the U.S. economy that have backed the Federal Reserve’s stance that weakness in reports earlier this year was transitory.
“There’s a lot of positivity in the air,” said Juan Perez, a currency strategist at foreign exchange company Monex Inc in Washington.
Perez pointed to recent positive readings on U.S. gross domestic product, consumer confidence, housing prices and inflation data. Additionally, no other central bank is seen as likely to raise rates in the near term, except for the Bank of England, an expectation which has already been priced into the market.
