The dollar extended gains on Thursday after upbeat US data and supportive minutes from the Federal's Reserve's latest policy meeting helped it shake off recent weakness.The dollar was 0.2 per cent higher at 112.710 yen in early Asian trading. It touched a 2-1/2-week low of 112.055 on Tuesday after declining steadily from a high above 113.750 scaled in December.The euro was 0.05 per cent lower at $1.2011 after losing roughly 0.4 per cent overnight. "The dollar did feel downward pressure at the turn of the year, but the selling was not based on very strong factors," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.Rebalancing of positions caused by investors closing their books towards the turn of each year can lead to dollar selling. Crude oil prices were at 2-1/2-year highs, helping fuel inflation expectations.The pound dipped 0.1 per cent to $1.3510, following overnight losses of 0.6 per cent, when it fell back from a 3-1/2-month high of $1.3614 overnight against a rebounding dollar.The Australian dollar slipped 0.2 per cent to $0.7822 and the New Zealand dollar dipped 0.1 per cent to $0.7085.The dollar index against a basket of six major currencies extended the previous day's bounce to stand 0.1 per cent higher at 92.248. It had declined to 91.751 on Tuesday, its lowest since Sep. 20.

Source: Economic Times January 04, 2018 02:48 UTC