Yesterday, the dollar climbed to a six-month peak, reversing earlier losses. This was due to new data showing the services sector picked up steam last month amid a rise in new orders and businesses paying higher prices.
The dollar recovered against most currencies after the data, with the euro and sterling hitting three-month lows and the yen touching session troughs. The currency, however, pulled back a bit in the afternoon as volume thinned.
The yen pulled back from a 10-month low against the dollar after Japan issued its strongest warning in weeks over sharp currency moves, raising the odds of government intervention if the slump continues. The nation’s top foreign exchange official said speculative moves could be seen in the market and warned that Tokyo was prepared to take action if needed.