By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- The dollar edged higher in Asian trading hours on Wednesday, extending gains made in the previous session following strong economic data and a rate call from the Federal Reserve.
The ICE dollar index DXY +0.30% traded at 80.248, up from 80.231 in late North American trading on Tuesday.
The dollar index gained over the session on Tuesday, rising from 79.869 recorded late Monday.
Federal Reserve officials Tuesday reiterated that they expect rates to stay low until late 2014 and the Fed maintained its bond-purchase programs.
Data out on the same day showed that retail sales climbed in February.
Noting ongoing gains for the U.S. dollar, Credit Agricole strategists attributed the move to “a Fed [Federal Open Market Committee] statement that was less downbeat than in January, with no hint of any further quantitative easing.”
“In combination with a solid February retail-sales report and upward revisions to December and January, U.S. bond yields pushed higher,” they added.
Against the Japanese currency USDJPY +0.27% , the dollar on Tuesday touched its highest level since last April.
Gains continued for the dollar on Wednesday, with the dollar buying 83.27 yen, compared with ÂĄ83.03 in late Tuesday trading.
Michael Turner, strategist at RBC Capital Markets, noted the yen/dollar movement and said a further backup in U.S. yields overnight was “no doubt assisting” the move.
The euro EURUSD -0.28% eased to $1.3038 from $1.3065 in late trading Tuesday, while the British pound GBPUSD -0.19% traded at $1.5661 against $1.5693.
Sarah Turner is MarketWatch's bureau chief in Sydney.
