Dollar firm

TOKYO: The dollar steadied following a rally against its peers overnight, as investors awaited U.S. economic growth data, which could give a fresh catalyst for direction amid a wider focus on global monetary policy and bond yield direction.

The dollar index, which measures the greenback´s strength against a basket of six major currencies, stood little changed at 94.719.It had risen 0.4 percent overnight to pull away from a two-week trough of 94.084 as the euro slid sharply after the European Central Bank kept to its planned timetable to move away from its accommodative monetary policy.

While the euro´s downturn provided the dollar with a significant lift, the U.S. currency enjoyed support from other quarters as well. The 10-year U.S. Treasury note yield extended its overnight rise and touched a six-week high of 2.988 percent as traders braced for a potentially strong reading of U.S. gross domestic product (GDP) data, set for release later on Friday.

The U.S. economy is expected to have increased at a 4.1 percent annualised rate in the second quarter, following a 2.0 percent pace of growth in the first quarter. "The dollar is higher across the board and this reflects the lift it is enjoying from fundamental factors, notably higher U.S. yields and Wall Street shares amid improving risk appetite," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.