Мay 29 (Bloomberg) -- The dollar rose against the yen and euro on analysts' expectations a government report will show the U.S. economy expanded more than earlier reported in the first quarter. The U.S. currency rose to 118.97 yen at 7:40 a.m. London time from 118.63 yesterday. It strengthened to $1.1742 per euro from $1.1767. The dollar has risen 1.1 percent since falling to a record low of $1.1933 against the euro on Tuesday. The world's biggest economy probably grew at an annualized pace of 1.8 percent, faster than the initially reported 1.6 percent rate, economists polled by Bloomberg News expect a report at 1:30 p.m. London time to show. Reports tomorrow may show manufacturing quickened and consumer confidence improved in May.
``A stronger growth report could prompt investors to further'' reverse trades set up to profit from a falling dollar, said Hans Guenter Redeker, London-based head of foreign-exchange strategy at BNP Paribas, the 13th-biggest currency trading bank, according to Euromoney magazine. The dollar may strengthen to below $1.17 today, he said. The National Association of Purchasing Management-Chicago will probably say its factory index rose to 49 in May from 47.6 in April, according to economists. Although a reading below 50 indicates that business is shrinking, the narrower rate of contraction suggests manufacturing is recovering. The University of Michigan may say its final reading of consumer sentiment for May is 93, up from 86 in April, based on a Bloomberg survey. ``The outlook for the dollar is improving,'' said Takashi Toyahara, foreign exchange manager at Nomura Securities Co., Japan's biggest broker. ``Improved data out of the U.S. may show the economy is not as bad as we thought.'' The yen may fall to 119.40 against the dollar today, he said. In Japan, a report showed industrial production fell in April, raising concern the second-largest economy may lapse into its fourth recession since 1991.//www.bloomberg.com