TOKYO: The dollar started the week close to a six-year peak against the yen and touched a fresh four-year high against a basket of currencies, getting a tailwind from data showing higher U.S. growth in the second quarter.
The Commerce Department on Friday raised its estimate of gross domestic product to show the economy expanded at a 4.6 percent annual rate - its fastest pace in 2-1/2 years.
The pick up in the economy was broad-based and highlighted a faster pace of business spending and sturdier export growth than previously estimated.
Speculators raised their bullish bets on the U.S. dollar in the week ended Sept. 23, as the greenback extended its winning weekly streak against a basket of currencies, according to the latest data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position rose to $35.81 billion from $31.42 billion the previous week.
The dollar added about 0.1 percent to 109.36 yen, and earlier got within a few ticks of last Friday's six-year peak of 109.54 yen, its loftiest perch since August 2008.
The dollar index, which tracks the U.S. unit against a basket of major rivals, climbed as high as 85.737. It was last up about 0.1 percent on the day at 85.714.
The dollar index marked its eleventh straight gaining week, its longest streak since it was allowed to float freely in 1971.
In Asia, traders turned their focus to Hong Kong after thousands of pro-democracy demonstrators blocked parts of the city and clashed with police.
The Hong Kong dollar, which is closely pegged to the U.S. dollar, slipped 0.1 percent to 7.761 against the greenback, its lowest level since March.
Some Hong Kong financial firms advised staff to work from home on Monday or go to secondary offices due to the street clashes.
Standard Chartered Plc STAN.L has suspended some of its Hong Kong banking operations, including over-the-counter services and cheque deposits, until further notice due to "situations in certain areas", the Asia-focused lender said on Monday.
Meanwhile, the euro edged down 0.1 percent to $1.2678, after earlier touching a nearly two-year low of $1.2667, and pressure remained on the European unit ahead of euro zone data this week, as well as a central bank meeting.
"Euro area inflation and sentiment data are expected to remain soft and unlikely to provide a much-needed boost for medium-term inflation expectations," Shinichiro Kadota, chief Japan FX strategist at Barclays Bank in Tokyo, said in a note to clients.
The European Central Bank will meet on Thursday, but is not expected to take any steps after it surprised markets with measures at its last meeting, including an interest rate cut. ECB President Mario Draghi is likely to remain dovish, and could reveal clues on the central bank's asset purchase plans.
They key U.S. nonfarm payrolls report on Friday will likely underscore the U.S. economic recovery has enough momentum for the U.S. Federal Reserve to hike interest rates sooner rather than later.
Employers likely hired 219,000 people in September, a rebound from August' s rise of only 142,000.
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