Investing.com - The dollar rose to one-month highs against the yen on Tuesday, as improved manufacturing data from Japan, the U.S. and Europe on Monday eased concerns over the outlook for global growth.
USD/JPY hit 99.90 during late Asian trade, the pair’s highest since June 5; the pair subsequently consolidated at 99.83, gaining 0.18%.
The pair was likely to find support at 99.16, Monday’s low and resistance at 100.45, the high of June 5.
On Monday, the Institute for Supply Management said its manufacturing purchasing managers’ index rose to 50.9 in June, recovering from a shock contraction in May.
However, the employment component of the index contracted for the first time since September 2009.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.
Meanwhile, stronger manufacturing data from Japan, the U.K. and the euro zone on Monday eased concerns over a slowdown in global economic growth and helped offset fears over the prospects of an imminent end to the Fed’s stimulus policies.
The yen was lower against the euro, with EUR/JPY rising 0.30% to 130.55.
Spain was to release official data on unemployment later in the day, while the U.S. was to produce official data on factory orders.
