Dollar Holds 4-Day Gain as Data Surprise Boosts Taper Prospects

Bloomberg, (15/8) -- The dollar remained higher after a four-day advance versus the euro as U.S. economic data surpassed analyst expectations by the most this year, bolstering the case to reduce monetary stimulus that tends to debase the currency. The Bloomberg U.S. Dollar Index was near a week-high before reports today that may show gains in industrial production and New York region manufacturing. The Citigroup Economic Surprise Index, which shows if U.S. data beat or missed expectations, touched a 2013 peak this week, adding to bets the Federal Reserve will start trimming bond purchases next month. The pound held near the strongest in six weeks against the euro before figures that may show U.K. retail sales rose in July. The dollar was little changed at $1.3256 per euro as of 8:24 a.m. in Tokyo after climbing 1 percent in the previous four days. The greenback bought 97.95 yen, down 0.2 percent from yesterday. The euro lost 0.2 percent to 129.84 yen. The pound was little changed at 85.49 pence per euro from yesterday, when it touched 85.28, the strongest since July 4.