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Dollar holds gains vs. rivals after strong U.S. GDP data

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Investing.com -

Investing.com - The dollar held gains against the other major currencies on Friday, after data showed that the U.S. economy grew at a faster rate than expected in the second quarter, adding to expectations for a rate hike in the next months.

The dollar pushed higher against the yen, with USD/JPY up 0.90% at 121.15.

The Bureau of Economic Analysis reported on Friday that U.S. gross domestic product increased by 3.9% in the last quarter, exceeding expectations for a 3.7% rise and up from a growth rate of 3.7% in the three months to March.

The data came a day after Federal Reserve Chair Janet Yellen said she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.

Earlier in the day, official data showed that Tokyo's consumer price index fell at an annualized rate of 0.1% in September, compared to expectations for a 0.2% downtick.

Tokyo's core CPI, which excludes fresh food, fell at an annual rate of 0.2% this month, in line with expectations.

EUR/USD dropped 0.71% to 1.1152, moving closer to Wednesday's two-and-a-half week lows of 1.1102.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.37% at a fresh three-week low of 1.5182, and with USD/CHF rising 0.34% to 0.9789.

The Australian and New Zealand dollars were weaker, with AUD/USD shedding 0.20% to 0.7009 and with NZD/USD sliding 0.20% to 0.6340.

Meanwhile, USD/CAD added 0.15% to trade at 1.3327, not far from the previous session's six-year peak of 1.3417.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.59% at one-month highs of 96.67.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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