Dollar hits fresh highs vs yen; Euro slightly higher as Greek concerns ease

On Wednesday the greenback climbed to eight-year peak versus the yen, as upbeat data released Tuesday continued to boost demand for the dollar.

Reports released on Tuesday indicated that U.S. business investment plans rose, consumer confidence increased and house prices were higher.

The positive data supported the view that the Federal Reserve could start to raise interest rates later in the year if the economy continues to improve as expected.

In Japan, Wednesday’s minutes of the central bank’s April meeting indicated that policymakers pushed back the time frame for achieving its 2% inflation target, spurring hopes for additional monetary easing later in 2015.

The dollar was 0.44% higher vs the yen to settle at 123.66, the most since July 2008 from 123.08 late Tuesday.

EUR/USD settled at 1.0876, rising 0.05%.

The euro was supported by the news from Greece, as Athens expressed confidence to that it would make a €305 million payment to the International Monetary Fund due on June 5.

Previously, Greece's Interior Minister cautioned that the country would be unable to make the repayment if a cash-for-reforms deal with its international lenders was not reached by then.

Later Wednesday Greek officials were to resume talks in Brussels with the country’s creditors.