The U.S. dollar pared earlier losses against both the Japanese yen and the euro on Tuesday after fresh data showed stronger-than-expected economic growth in the third quarter. The figures reinforced market expectations that the Federal Reserve is likely to pause interest rate cuts at its January policy meeting.
According to the first official estimate from the Bureau of Economic Analysis, U.S. gross domestic product expanded at an annualized rate of 4.3% in the third quarter. That reading comfortably exceeded the 3.3% growth forecast by economists surveyed by Reuters, underscoring the resilience of the world’s largest economy.
Following the release, the dollar trimmed its decline against the yen, trading near 156.11 yen, though it remained about 0.6% lower on the day. The euro also eased back from session highs, with gains against the dollar narrowing to around $1.1786, still up roughly 0.2%.
