Dollar Climbs as Data Support Economic Outlook

The dollar gained against the yen and euro as U.S. initial jobless claims declined to the fewest in three weeks and a measure of manufacturing activity rose more than forecast, adding to evidence the economy is recovering.

The pound climbed to the highest level in two weeks versus the dollar as a report showed U.K. house prices rebounded in October and Britain’s biggest business lobby raised its economic forecasts for this year and next. The Japanese currency earlier weakened for a third day against the euro before the Bank of Japan releases tomorrow the minutes of the central bank’s Oct. 4-5 meeting.