By Chelsey Dulaney
The dollar rose Tuesday as upbeat data on the U.S. economy bolstered the case for higher interest rates.
The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.1% to 91.52 as the dollar strengthened against the Japanese yen and commodity-linked currencies.
U.S. gross domestic product was revised up to 3.2% for the third quarter, its strongest rate in two years, according to the Commerce Department. The report showed more-robust consumer spending over the summer compared with the government's initial estimate, but business investment was weaker than earlier thought.
Separately, the Conference Board's consumer-confidence index rebounded sharply in November after declining in October.
The reports comeahead of key data this week on manufacturing and U.S. hiring.
"Market participants looked to buy the greenback ahead of economic data that could not only cement expectations for the Fed to raise U.S. borrowing costs next month, but could also signal a potentially faster pace of policy normalization in 2017," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, in a research note.
Fed funds futures, a popular tool for traders to bet on U.S. interest-rate policy, show a 98% probability that the Fed lifts rates next month, according to data from CME Group.
Meanwhile, the currencies of commodity-exporting nations fell as investors continue to assess the prospects for deal to cut oil production deal ahead of Wednesday's meeting of the Organization of the Petroleum Exporting Countries.
The dollar rose 0.2% against the Canadian dollar, 0.7% against the Russian ruble and 0.1% against the Norwegian krone.The British pound was resilient amid upbeat U.K. data and positioning adjustments heading into the end of the month, analysts said. Sterling rose 0.7% to $1.2504.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
November 29, 2016 11:09 ET (16:09 GMT)
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