The dollar strengthened against all but four of its 16 major counterparts. Its biggest gain came versus the South Korean won, which dropped amid concern authorities will take steps to weaken the currency. Australia’s dollar sank 0.5 percent and touched the lowest level since January after retail sales grew less than economists forecast. The yen weakened through 110 per dollar for the first time since August 2008 and the euro approached a two-year low.
USDJPY rose above 110 yen for the first time since August 2008 on Wednesday, continuing to ride on bullish momentum against its peers generated by gains against a flagging euro.
USDJPY had jumped more than five percent last month, buoyed by factors including enhanced prospects for an early rate hike by the Federal Reserve.
The dollar was up 0.4 percent at 109.98 after touching 110.09.
The euro was down 0.2 percent at $1.2612 having retreated to a fresh two-year low of $1.2571 overnight as a further slowdown in euro zone inflation intensified pressure for more stimulus from the European Central Bank.
The dollar extended its longest winning streak in more than two years before a report that may show U.S. hiring increased, while platinum slumped to a five-year low. Bunds rose after Germany sold 10-year notes to yield less than 1 percent for the first time.
U.S. companies added 205,000 workers in September, the first increase in three months, fueling speculation that Federal Reserve may raise interest rates sooner than anticipated. Euro-area factories cut prices in September by the most in more than a year and German manufacturing shrank, underlining the mounting challenge facing policy makers.
An ADP Research Institute report may show that U.S. companies added more workers after hiring 204,000 in August. Separate data may show manufacturing in the world’s largest economy continued to expand last month.
Euro-area manufacturing expanded at the slowest pace in 14 months, according to today’s Purchasing Managers’ Indexes from Markit Economics. The gauge stood at 50.3 in September, just above the 50 mark that divides expansion from contraction, and below a preliminary estimate of 50.5.