Yen Gains In Asia As Q3 GDP Comes In A Tad Stronger At Annual Pace
The yen gained in Asia as GDP for the third quarter came in a tad higher than expected at an annual pace.
In Japan, third quarter GDP came in at a a provisional 0.3% increase on quarter as expected and a 1.4% pace for the year, a bit more than the 1.3% rise expected. In Australia, the wage price index came in at a 0.5% increase, compared with a 0.7% rise seen on quarter and at a 2.0% rise, compared with a 2.2% increase on year expected.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.72% to 94.72.
Overnight, the dollar traded lower against a basket of currencies on Tuesday pressured by a surge in the euro to three-week highs following better-than expected economic growth data from Germany while upbeat US wholesale inflation data failed to stem losses in the greenback.
The dollar struggled to pare losses as upbeat wholesale inflation failed to offset negative sentiment on greenback amid a surge in both the euro and sterling.
The Labor Department said on Tuesday its producer price index for final demand increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.
The stronger wholesale inflation report comes ahead of consumer inflation data slated for Wednesday.
The euro rose 0.93% to $1.1776 against the dollar, a three-week high, after preliminary data showed that Germany, the Eurozone’s largest economy, grew 0.8% in third quarter of the year. That beat forecast of a 0.6% rise.
The sharp rise in German GDP spurred higher growth in broader Eurozone economy as initial estimates for third quarter economic growth showed the trading bloc grew at annualized rate of 2.5%.
Sterling, meanwhile, continued to trade higher against the greenback, despite a report showing both consumer and wholesale inflation for October undershot economist expectations.