AFP, Tokyo :
The dollar hit multi-month highs against the euro and yen in Asia Wednesday after a surge in US housing construction boosted optimism over the state of the world’s number one economy.
In late afternoon Tokyo trade, the greenback rose to 103.23 yen at one stage, its strongest level in four months, and well up from 102.91 in New York.
The euro weakened to nine-month low of $1.3303 from $1.3321 in US trade, while it strengthened to 137.29 yen against 137.07 yen.
In other trading, the British pound fell to as low as $1.6602, its weakest level since April.
Traders moved out of the yen-seen as a safe-haven currency in times of turmoil-after the upbeat US data and as investor concerns about a clash between Russia and Ukraine eased.
Housing starts in the world’s biggest economy jumped 15.7 percent in July to their strongest level since last November, while new building permits rose 8.1 percent.
The figures would boost hopes for an earlier-than-expected US interest rate hike, which tends to boost the dollar.
Easing geopolitical jitters, Russian President Vladimir Putin and his Ukrainian counterpart will meet next week for the first time in two months. The gathering will also involve senior European Union officials.
The dollar rally also came ahead of Wednesday’s release of minutes from the policy-setting Federal Open Market Committee’s last meeting.
