The dollar rose to its highest level since September as data from industrial production to housing starts helped offset unemployment figures a week ago, signalling the Federal Reserve may continue reducing stimulus. The Bloomberg Dollar Spot Index climbed this week by the most since November as industrial production in the US rose for a fifth month in December, capping the strongest quarter since 2010. The Australian dollar sunk to a more than three-year low and Turkey's lira led declines in emerging-market currencies. Canada's dollar tumbled before the central bank reports on January 22 on its latest policy decision. There was an "impressive dollar recovery after the shocking NFP number," said Masafumi Takada , a director at BNP Paribas SA in New York , referring to non-farm payroll data last week that missed forecasts. "Emerging markets continue to stay in a soft tone. That's another reason for USD higher." The Bloomberg Dollar Spot Index, which tracks the US currency against 10 major counterparts, rose 0.8 per cent this week to 1,032.39 and touched 1,032.84 on Friday, the highest since September 9 . The dollar advanced 0.9 per cent to $1.3541 per euro and advancing to $1.3517 on Friday, the strongest since November 26 . The US currency gained 0.1 per cent to 104.32 yen . The euro fell 0.8 per cent to 141.25 yen . The lira was the world's worst-performing currency over the past month, tumbling to a record on Friday, before a central bank meeting this week at which officials will keep its three main rates unchanged, according to surveys of economists by Bloomberg . The decline in the currency has been accelerated by prospects for reductions in US monetary stimulus and a Turkish corruption probe the government has termed a coup attempt. "We think that the chances of a surprise rate hike by the Turkish central bank on Tuesday is higher than what the market is pricing in," Marc Chandler and Win Thin, currency strategists at Brown Brothers Harriman & Co , wrote yesterday in a report. A surprise decision "could also be the trigger for a sharp rally in Turkish assets, especially the lira." The Turkish currency depreciated 3.2 per cent to 2.2332 per dollar and is down 8.9 per cent in the past month. The Aussie was the weakest major currency this week as data in Australia showed jobs dropped by 22,600 last month and the unemployment rate held at a four-year high of 5.8 per cent. Economists in a Bloomberg News survey had forecast 10,000 additions.
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