Tokyo - The dollar extended its gains on Wednesday after getting a boost from strong housing data and expectations for more European central bank stimulus.
The greenback bought 120.90 yen - near a two-month high - against 120.68 yen in New York and 119.94 yen in Tokyo earlier on Tuesday.
The euro weakened to $1.1144 from $1.1149, while it ticked up to 134.68 yen from 134.54 yen.
Traders moved into the greenback in New York trade after figures that showed US new home construction hit its strongest pace in more than seven years in April, renewed talk of an interest rate.
The euro retreated after a European Central Bank official said it would increase its asset purchases in May and June to offset an expected financial market slowdown in the following months.
“The dollar is being bought on the relatively strong housing data and bond-market friendly comments from ECB officials,” said Yujiro Goto, a Nomura currency strategist.
“Since the Federal Reserve is data-dependent, seeing more good economic reports is overwhelmingly important,” he told Bloomberg News.
Investors will late Wednesday pore over the minutes of the Fed's April 28-29 policy meeting to look for clues about when it might lift interest rates, which have been pegged at record lows since 2008.
Currency markets were little affected by data earlier on Wednesday that showed Japan's economy expanded by a better-than-expected 0.6 percent in the first quarter. Markets had been expecting a 0.4 percent rise.
AFP