Dollar up as short bets unwind before US data

London

THE dollar rose to its highest levels in nearly two months against the Japanese yen on Wednesday as investors reduced bearish bets against the greenback before data this week sheds more light on the ongoing recovery in the US economy.

A gradual rise in short-dated US government bond yields since early June hasn't been matched by a rise in the currency with a trade-weighted basket of the dollar against its peers moving sideways since then.