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03-01-2019, 06:49 AM
Dollar Rises on Stronger U.S. Economic Data

The U.S. dollar rose on Friday in Asia after data showed that the American economy registered strong annual growth.

Gross domestic product increased at a 2.6% annual rate in the fourth quarter, the Commerce Department said in its advance estimate on Thursday, in line with economists' forecasts.

The Chicago PMI rose to a reading of 64.7 in this month from 56.7 last month, topping economists' estimates for a reading of 58.1.

The report came just a day after Federal Reserve Chairman Jerome Powell delivered an upbeat assessment of the economy and said the central bank was looking at adjusting its runoff of the balance sheet policy later this year.

The U.S. dollar index last traded at 96.132 by 10:40 PM ET (02:40 GMT), up 0.1%.

Concerns over the fact that U.S. President Donald Trump walked away from his summit with North Korean leader Kim Jong-Un without a deal were also said to be boosting the safe-haven dollar.

Meanwhile, the USD/CNY pair gained 0.1% to 6.6970 after the Caixin/Markit Manufacturing Purchasing Managers' Index came in at 49.9 for February, higher than the expected 48.5 and last month's 48.3.

On the trade front, White House economic advisor Larry Kudlow said Sino-U.S. trade talks are making "fantastic" progress.

Uncertainties surrounding the trade progress remains however as U.S. Trade Representative Robert Lighthizer said on Thursday that it was too early to predict an outcome in talks between Washington and Beijing.

Elsewhere, the USD/JPY pair rose 0.3% to 111.66. The AUD/USD pair and the NZD/USD pair were both trading near flat.

Source: www.investing.com