Dollar Trades Near 2-Week High Against Yen

The dollar traded near a two-week high against the yen before a government report today that analysts say will show the economy expanded at a faster pace last quarter than initially estimated.

The U.S. currency may rise for a fourth day after Federal Reserve Bank of Dallas President Richard Fisher said he expects the central bank would raise interest rates should the public begin to expect faster gains in consumer prices. The euro traded near the highest in a month against the yen before data that may show unemployment in Germany fell for a 28th consecutive month.

The U.S. currency was at 104.82 yen at 10:11 a.m. in Tokyo after rising yesterday to 105.31 yen, the strongest since May 14. The dollar traded at $1.5656 per euro from $1.5638. The yen held at 164.12 per euro after touching 164.48 yesterday, the weakest since April 24. The dollar may rise to 105.30 yen and $1.5610 against the euro today, Ishikawa forecast.

The U.S. economy probably expanded at a 0.9 percent annual pace last quarter, according to a Bloomberg News survey. In its initial estimate on April 30, the Commerce Department had said gross domestic product increased at a 0.6 percent annual clip. The report is scheduled for release at 8:30 a.m. in Washington.

Data yesterday showed U.S. durable goods orders excluding transportation equipment rose 2.5 percent in April, while the median forecast in a Bloomberg survey was for a 0.5 percent drop.

Dollar Trades Near 2-Week High Against Yen, Bloomberg
5/28/2008 7:07:24 PM