NEW YORK, Oct. 30 (AFP) — The dollar pushed higher Friday, buoyed by news that the US economy beat expectations and expanded at an annual rate of 3.8 percent in the third quarter.
The euro fell to 1.2068 dollars at 2100 GMT after trading at 1.2139 dollars late Thursday in New York.
The dollar edged up to 115.66 yen against 115.43 on Thursday. In late New York trade, the dollar stood at 1.2801 Swiss francs, up from 1.2731.
The pound was being traded at 1.7733 dollars after 1.7826 late on Thursday.
The report on gross domestic product in the world’s biggest economy in the July-September period topped expectations of a 3.6 percent expansion, and showed acceleration from 3.3 percent in the previous quarter.
The report suggested the economy appears to have weathered the impact of hurricanes Katrina and Rita and a surge in energy costs.
"Ultimately, the rise in GDP shows that the US economy remains strong, despite two major hurricanes and continued interest rate increases," wrote analysts at Forex Capital Markets.
"Although the technical picture for the dollar is beginning to recede, the fundamental picture in the US remains kinder for the US currency on the basis of further Fed rate hikes, until the data begin to get the attention of the Treasury market," said Ashraf Laidi, chief currency analyst at MG Financial Group.
But the US growth report’s details also convinced financial markets that the Fed would not turn more aggressive and may pause its rate-hike campaign next year.
