Dollar firms ahead of U.S. manufacturing data

The dollar firmed against the Japanese yen on Wednesday ahead of the release of U.S. manufacturing data expected to show a recovery from the pandemic.

The euro traded in a narrow range as traders waited for data on Germany’s manufacturing sector, unemployment rate, and retail sales.

The dollar stood at 107.83 on the yen, nearing its highest level in three weeks. The sentiment for the safe-haven yen soured after the Bank of Japan reported that business sentiment dropped to an 11-year low.

The euro steadied at 1.1238 on the dollar and at 90.75 pence on the pound. The sterling firmed at $1.2386. 

The U.S. Institute for Supply Management’s PMI is expected to report a continued recovery in June after falling to an 11-year low in April.

In onshore trade, the yuan sat at $7.0614 as investors became cautious over the passage of the Hong Kong security law.

10-year U.S. Treasury yields traded in a narrow range around 65% since June. Fed Chairman Jerome Powell said that policymakers are considering yield curve control. 

The Aussie stood at $0.6910, while the kiwi bought $0.6463.