Dollar firms in Asia after upbeat US data

TOKYO: The dollar firmed in Asian trade on Friday after data showed manufacturing activity beat expectations and rose to its highest level in two years.

In early trade the greenback bought 99.64 yen, compared with 99.52 yen late Thursday in New York.

The euro fetched $1.3194, against $1.3208 and 131.50 yen from 131.45 yen.

The US Institute for Supply Management's purchasing managers index (PMI) index came in at 55.4 last month, well up from June's 50.9 level and its highest level since June 2011. It was also well up from the 51.5 forecast.

A reading above 50 indicates growth, while anything below signals contraction.

The report came a day after official figures showed the economy grew 1.7 percent in the second quarter, much better than the 1.1 percent expected.

The news boosted Wall Street, where the S&P 500 surged 1.25 percent to a record close, while the Dow climbed 0.83 percent and the Nasdaq rallied 1.36 percent.

But dealers said the dollar will unlikely rise above 100 yen for now as Japanese exporters are primed to sell the unit at that level.