The Dollar rallied on Thursday, rising to a three-month high against the Yen, on data showing the US economy grew in Q1 faster than previously estimated and as hawkish Federal Reserve comments boosted expectations for an interest rate increase this year.
The hawkish comments from Dallas Fed President Fisher and Minneapolis Fed President Gary Stern, who said that the Fed must quit its monetary easing campaign at some point, suggested that inflation risks were not far away from policymakers' minds.
Data on Wednesday showing US durable goods orders fell by a smaller-than-expected 0.5% last month bolstered a view that the Fed may have left its aggressive campaign to ease monetary policy behind it for now after slashing target borrowing costs to 2%.
Buoyant US stocks and a a barrel drop in the price of Oil added to investor enthusiasm for the Dollar.
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