America's currency has climbed for a third day following the release of data which showed manufacturing figures to have risen to their highest point in almost a year.

The dollar rose to 120 yen for the first time since February after the figures were released, also rising to $1.3577 against the euro.

In addition, further gains were seen against 13 of the 16 most traded currencies amid anticipation of figures which could show that orders placed with US factories increased by 2.2 per cent in March.

The US' commerce department is set to issue its report this morning in Washington.

"Sentiment is turning to neutral from bearish,'' senior currency dealer at Resona Bank Nobuaki Tani told Bloomberg.

Interest rate futures highlighted a drop in speculation that the Federal Reserve would cut borrowing costs in August, with the figure standing at 22.5 per cent down from 32.5 per cent last week.

"Expectations for rate cuts are receding a bit. We may see more buying of the dollar," said Mr Tani.

Bloomberg forecasts that further dollar gains against the euro could be limited after unemployment in Germany was seen to fall, highlighting an increased chance of the European Central Bank raising interest rates.