The dollar touched the strongest in almost six years versus the yen as Treasury yields climbed on speculation U.S. economic reports this week will back the case for the Federal Reserve to boost interest rates next year.
“The economy has got good momentum,” said Michelle Girard, chief U.S. economist at RBS Securities Inc. in Stamford, Connecticut. “The second half of the year is going to look a good deal better than the first half.”
With the start of the spring-wheat harvest in Arnegard, North Dakota, a week away, the bins on Bob Wisness’s 11,000-acre farm are half full with last year’s crops that have been stranded by a train traffic jam.
The slowdown in purchases followed a 0.2% advance in June, the Commerce Department reported today. The median forecast of 82 economists surveyed by Bloomberg called for a 0.2% gain. Excluding cars, sales rose 0.1%.