Dollar gains versus yen on U.S. housing, sentiment data

By Vivianne Rodrigues

NEW YORK (Reuters) - The U.S. dollar rose against the Japanese yen on Friday, after a trio of better-than-expected data injected a dose of optimism about the U.S. economy.

The upbeat readings on U.S. durable goods orders, new-home sales, and a rebound in consumer sentiment from a 28-year low allayed some of the recent gloom over the economy and financial markets, sending stocks higher and giving a boost to the beleaguered U.S. currency.

"This is perhaps the best we could have ever hoped for amid the current economic conditions," said Michael Woolfolk, senior currency strategist at The Bank of New York Mellon in New York.

"It flies in the face of the pessimists out there calling for a recession. It's just simply not reflected in the numbers," he added. "The dollar rally gets a strong green light to continue buying."

In late trading in New York, the dollar rose 0.5 percent to 107.87 yen, after climbing as high as 107.94 yen, slightly below a one-month high of 107.98 yen set on Thursday, according to Reuters data.

The euro traded 0.1 percent higher at $1.5693, roughly 3.0 cents below a record high set in mid-July.

Against the yen, the euro jumped 0.6 percent to 169.34 yen.

But on the New York Board of Trade's U.S. dollar index .DXY of major currencies the U.S. dollar remains trapped in its range of the past four months, after seeing a big slide last year.