Forexpros - The U.S. dollar hit fresh seven-and-a-half month highs against the yen on Thursday, but was lower against the euro, as encouraging manufacturing data from the euro zone and China boosted market sentiment. During European late morning trade, the dollar was lower against the euro, with EUR/USD up 0.27% to 1.2863. In the euro zone, data showed that Germany’s manufacturing purchasing managers’ index rose to 46.8 in November, up from 46.0 in October and better than forecasts for a reading of 45.9. The euro zone’s manufacturing PMI rose to 46.2 this month from 45.4 in October, above expectations for a reading of 45.6. However, the euro zone’s services PMI declined to 45.7, from 46.0 in October, compared to expectations for a reading of 46.1. The data came after a report earlier showed that China’s preliminary HSBC manufacturing PMI rose to 50.4 in November, up from a final reading of 49.5 in October. The euro was also supported after German Chancellor Angela Merkel said an agreement to unlock a delayed bailout installment for Greece was still possible when euro zone finance ministers resume talks on Monday. Talks between finance ministers and the International Monetary Fund ended without a deal on Tuesday, amid disagreements on how best to reduce the country’s debt to sustainable levels. Elsewhere Thursday, Spain successful auctioned EUR3.38 billion of three and five-year bonds at lower yields than previously, easing pressure on Madrid to seek a bailout. The greenback was little changed against the pound, with GBP/USD inching up 0.02% to 1.5953. Elsewhere, the greenback was trading at its highest level since early April against the yen, with USD/JPY up 0.24% to 82.72, but was lower against the Swiss franc, with USD/CHF slipping 0.23% to 0.9366. The yen remained broadly weaker amid expectations that upcoming elections on December 16 will result in growing political pressure on the Bank of Japan to implement more aggressive monetary easing measures. The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.03% to 0.9966, AUD/USD slipping 0.11% to 1.0357 and NZD/USD dipping 0.10% to 0.8137. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to 80.83. Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.

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