The U.S dollar rose against the yen and the Swiss franc after a series of strong U.S. data showing an increase in consumer spending and a rise in consumer sentiment.
Consumer spending in February rose by the most in seven months, by 0.8 percent, beating expectations of a 0.6 percent increase. This was higher than January’s 0.4 percent . The data is a key indicator of the state of the U.S economy since consumer spending takes up the biggest part of the economy.
Meanwhile, the University of Michigan consumer sentiment index that was released shortly after the personal spending data also came in strong, showing the index rose to 76.2 – the highest in more than a year – from 75.3 in February. This was the final reading. Forecast was for a final reading of 75. A preliminary March reading pegged the level at 74.3.
Incomes in the U.S. climbed 0.2 percent for a second month, helping households spend more. Also, a strengthening labour market is helping household sentiment. The jobless rate reached a three-year low of 8.3 percent in February.
USDJPY jumped after the data from 82.09 to 82.42 by 10am New York time.
USDCHF rose to 0.9029 from 0.9015 within a few minutes of the data.