The dollar rose to its highest level in more than five years and U.S. stock-index futures advanced before the release of American factory data. Oil gained with silver, while tin dropped.
The Bloomberg Dollar Spot Index strengthened 0.4 percent at 1:30 p.m. in Hong Kong. The yen retreated 0.6 percent and the euro headed for its lowest level since June 2010. Standard & Poor’s 500 Index futures increased 0.5 percent. Bonds of Kaisa Group Holdings Ltd. plunged to record lows after the Chinese developer defaulted on a loan. Crude in New York advanced 1.2 percent, following its biggest annual loss since 2008. Silver gained 1.5 percent, while tin fell 0.7 percent.
The dollar is extending gains after its best year since at least 2005, while the S&P 500 climbed 11 percent in 2014 and Treasuries returned the most in three years. Investors piled into U.S. assets as the Federal Reserve pledged patience in raising interest rates and data showed the economy grew the most in the third quarter since 2003.
“While the Fed is not going to rush into any action, rates will go up,” said Thomas Averill, a managing director in Sydney at Rochford Capital, a currency and rates risk-management company. “The market is very long the dollar against the yen and the euro, and across the board.”
The yen retreated to 120.44 against the U.S. currency. The euro dropped 0.4 percent to $1.2054, extending its worst annual loss since 2005. Strategists, who were too timid with their call for a decline in 2014 to $1.28, now see a drop to $1.18 by the end of this year.