The dollar was up to its highest level in six months in a move that reversed losses earlier. It was a result of fresh data that show the sector of services gained momentum last month due to an increase in orders as well as businesses that pay higher costs.

The dollar was able to rebound against a variety of currencies following the release of data were released. The sterling and the euro hitting three-month lowests while the yen dipping to sessions lows. However, the currency was able to pull back after lunch as the volumes dwindled.

The yen retreated from a low of 10 months against the dollar following Japan issued the most forthright warning since weeks about abrupt currency fluctuations, increasing chances of intervention by the government in the event of a prolonged slump. A most senior foreign exchange official warned that there could be speculative movements in the markets and warned Tokyo would be ready to respond if necessary.

Source: bnnbloomberg.ca