FOREX-Trade data lifts U.S. dollar, Canadian dollar slides

Wed Jan 8, 2014 4:24am EST
 
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* U.S. dollar helped by trade data

* Canadian dollar at lowest in almost 4 years

* Focus on U.S. jobs data on Friday

By Laurence Fletcher

LONDON, Jan 8 (Reuters) - The dollar rose against the yen on Wednesday as upbeat U.S. trade data the previous day triggered renewed appetite for riskier assets among global investors.

The Canadian dollar, against which hedge funds have been betting, dropped versus the U.S. currency after activity by purchasing managers nosedived unexpectedly in December.

The U.S. dollar rose 0.5 percent to 105.07 yen, pulling further away from Monday's two-week low of 103.88 and back towards last week's five-year high of 105.45 yen. One trader cited options expiring at 105 yen, which could help pin the Japanese currency at these levels.

The dollar index hit a one-month high of 80.954 and was last up 0.1 percent on the day at 80.943.

Data on Tuesday showing the smallest U.S. trade deficit in four years, as exports hit a record high, lifted the dollar. At the same time, global stocks rose, indicating the greater risk appetite that is usually a sign to sell the yen.   Continued...