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NEW YORK (Reuters) - The dollar rose on Tuesday, hitting a nine-week high against the yen, after a report showed U.S. manufacturing expanding at its fastest pace in almost a year.
Contrasting with recent weak economic reports which have weighed on the dollar, the headline index in Institute for Supply Management's survey on manufacturing number hit its highest level since May 2006. The employment and prices components of the survey climbed to eight-month peaks. However, analysts cautioned that data may provide little more than a short-term reprieve for the greenback.
"Clearly, the ISM report was good news, but it's just one number, and recent data has been overwhelmingly negative," said Omer Esiner, senior market analyst at Ruesch International in Washington. "So I'd say dollar upside is likely to be limited."
Midafternoon, the euro was near session lows at $1.3601, down 0.3 percent from late Monday but still near the $1.3683 all-time high hit last week, according to electronic trading platform EBS. The dollar rose 0.3 percent to 119.77 yen, near a nine-week high at 119.90 and the psychologically important 120 level. Against the Swiss franc, the dollar rose to a two-week high of 1.2164 francs.
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