Dollar rises as US economy outlook brightens
The dollar rose on Tuesday in thin pre-holiday trade as increasing evidence of a solid recovery in the United States reinforced convictions the Federal Reserve will continue to step away from its bond buying stimulus.
In the very near term, the market will likely struggle to find fresh stimulus ahead of year-end holidays. Most financial markets will be shut on Wednesday for the Christmas Day holiday and many will stay closed on Thursday.
U.S. stocks were little changed ahead of an early close while European stocks edged up, adding to the best run-in to Christmas since 1999, although trading in the shortened session was thin.
In late morning New York trade, the euro was down 0.2 percent at $1.3664. Against the yen, the common currency flat at 142.58, but not far from a five-year high of 142.90 set last week.
The dollar gained 0.2 percent to 104.34 yen, not far off a five-year high of 104.63 touched on Friday.