Dollar Advances to Highest Since January on U.S. Outlook

A dollar gauge climbed to the strongest level in more than seven months on bets U.S. economic growth will boost chances the Federal Reserve will raise interest rates next year sooner than some traders anticipate.

The yen approached the weakest since 2008 versus the dollar amid speculation Japan’s Prime Minister Shinzo Abe will appoint a policy maker who may shift pension funds toward riskier assets, damping demand for the nation’s currency. U.S. manufacturing expanded in August at the fastest pace in three years as orders grew by the most in a decade, an index showed. Russia stepped up its criticism of the U.S. over Ukraine.