rebounded against the Japanese currency, nearing its 2013 peak
With the Bank of Japan intent on maintaining its ultra-loose
monetary policy, the yen remains the funding currency of choice.
Demand for the greenback returned with a vengeance overnight
after data showed U.S. retail sales rose solidly in November and
the past month was revised higher.
This prompted some analysts to lift their fourth quarter GDP
growth estimates by as much as half a percentage point to as
high as a 2.2 percent annualised rate.
The upbeat data also helped keep alive expectations the
Federal Reserve could start scaling back its massive bond buying
stimulus as early as next week when it holds its last policy
meeting for the year.
U.S. Treasury yields rose, pushing the benchmark 10-year
yield to 2.88 percent, within sight of its 2013 peak
of 3.01 percent set in September.
"We expect to see the USD trade well into next week's Fed
meeting," analysts at BNP Paribas wrote in a note to clients.