A gauge of the dollar gained for a third day to near the highest level this year, after US economic data reinforced the case for more monetary tightening.
The Bloomberg Dollar Spot Index rose 0.1%, taking gains this week to 0.9%. The US currency was supported after a strong reading of US services ISM data on Wednesday nudged up market pricing for a 25 basis-point Federal Reserve rate hike in November to around 55% from around 50% before the data.
More evidence of a resilient US economy would continue to boost the dollar, with analysts focusing on US employment data due later in the day.
GBP/USD falls as much as 0.4% to 1.2458 in a third consecutive day of declines, as traders pare bets on how much more the Bank of England will hike interest rates.
Money markets price a peak rate of 5.7%, lowest since June 12
The central bank's survey of executives suggested inflation pressures are easing, which follows comments from BOE Governor Andrew Bailey who said Wednesday the fall in the inflation rate will continue and likely be quite marked.
EUR/USD drops 0.2% to 1.0707 low.
USD/JPY eased 0.1% to 147.49 after reversing gains to 147.87, its highest since Nov. 4.
Bank of Japan Board Member Junko Nakagawa said it's appropriate to continue with monetary easing for the time being as the inflation target hasn't been achieved yet.
AUD/USD reverses losses to trade little changed on the day
The Aussie dollar earlier slipped after the nation reported a smaller trade surplus for July.
Source : Bloomberg
