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Dollar index at 11-month highs

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Investing.com -

Investing.com - The dollar extended gains on Wednesday, rising to 11-month highs against a basket of other major currencies after upbeat U.S. housing data on Tuesday indicated that the recovery is gaining traction.

The euro fell to fresh nine-month lows, with EUR/USD slipping 0.12% to 1.3303.

The dollar strengthened across that board after data on Tuesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated, pointing to underlying strength in the housing sector.

The data offset a report showing that U.S. consumer prices rose just 0.1% in July.

The pound was at four-and-a-half month lows, with GBP/USD at 1.6610.

Sterling fell sharply on Tuesday after a report showing that the annual rate of inflation in the U.K. slowed to 1.6% in July was seen as diminishing the likelihood that the Bank of England will raise rates this year.

The dollar advanced to four-and-a-half month highs against the yen, with USD/JPY rising 0.27% to 103.18, while USD/CHF eased up 0.09% to 0.9099.

The Australian and New Zealand dollars were also weaker, with AUD/USD slipping 0.13% to 0.9289 and NZD/USD down 0.21% to 0.8399.

Earlier Wednesday, Reserve Bank of Australia Governor Glenn Stevens said market have "underappreciated" the risk of a weaker Australian dollar, adding that it would be surprising based on economic fundamentals if the currency maintained current levels.

Elsewhere, USD/CAD edged up 0.07% to 1.0949.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% to 82.03, the highest level since September 6.

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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.


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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