Azernews.Az

The yen remained higher versus the greenback as trading patterns suggest its declines this month were excessive. Australia’s currency erased earlier losses after a report showed the nation’s private capital expenditure unexpectedly increased. U.S. financial markets are shut for Thanksgiving.

“Some investors might look to take some of their chips off the table following the run up in the dollar in the past couple of months,” said Michael Turner, a debt and currency strategist at Royal Bank of Canada in Sydney. “The data have turned this week in the U.S., but the reaction has been exaggerated.”

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major peers, was little changed at 1,097.04 as of 11:40 a.m. in Tokyo after declining 0.2 percent yesterday.

The dollar slipped 0.1 percent to 117.61 per yen, after reaching 118.98 on Nov. 20, the strongest level since August 2007. It was at $1.2500 per euro from $1.2506, after falling for three days. The yen gained 0.2 percent to 147.01 per euro.

The greenback’s 14-day relative-strength index versus the yen was at 73, above the 70 level that some traders see as a signal an asset may have risen too far, too fast and is due to reverse course. It has been above 70 since Oct. 31.

Below Estimates

Citigroup Inc.’s Economic Surprise Index for the U.S., which measures whether data have been above or below analysts’ forecasts, fell to 6.2 yesterday, the lowest since Aug. 25.

U.S. household purchases rose 0.2 percent, less than the projected 0.3 percent increase in a Bloomberg News survey, while bookings for non-military capital goods excluding aircraft unexpectedly fell 1.3 percent for a second straight month, Commerce Department data showed yesterday.

“While none of the numbers individually could be considered ‘A league’, the fact the overwhelming majority of the most closely watched indicators undershot expectations has ensured that the big dollar has lost ground,” National Australia Bank Ltd. analysts, including Ray Attrill, the bank’s global co-head of currency strategy, wrote in a report today.

Australia’s dollar gained 0.2 percent to 85.64 U.S. cents, erasing a 0.2 percent decline.

The nation’s private capital expenditure increased 0.2 percent in the third quarter, a statistics bureau report showed today. The figure was forecast to drop 1.9 percent, according to the median estimate in a Bloomberg survey.

The won advanced 0.4 percent to 1,102.05 per dollar. The South Korean currency has rallied 1.2 percent in the five days through today, the longest winning streak since July 3.