TOKYO, Jan 17 — The US dollar gained today as US data suggested the world's largest economy maintained a moderate growth pace at the end of 2019, reaching an eight-month peak against the safe-haven yen.

US retail sales increased for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week, indicating the labour market remained strong.

Other data showed a gauge of manufacturing activity in the US Mid-Atlantic region rebounded in January to its highest in eight months, leading the Federal Reserve Bank of Philadelphia to call the factory outlook the brightest in more than 18 months.

"Consumers opened the throttle and took more shopping trips to the malls across America, which ensures GDP growth will be comfortably above 2 per cent in the fourth quarter,” said Chris Rupkey, chief financial economist at MUFG Union Bank. "There's nothing limiting this economic expansion.”

The US dollar rose to as high as 110.24 yen versus the Japanese currency, its highest level since late May in 2019.

"A lift in US Treasury yields, a firmer US dollar and record highs in many global equity markets have encouraged the dollar/yen higher,” said Richard Grace, chief currency strategist at Commonwealth Bank of Australia (CBA) in Sydney.

The dollar index, which tracks the greenback's strength against a basket of six major currencies, last stood at 97.308, up 0.1 per cent on the day. The euro barely moved at US$1.1137.

The Australian dollar gained to as high as US$0.69335 , its 1-1/2-week high of US$0.6897 overnight and was last traded at US$0.6897.

Looking ahead, the Aussie currency will likely take some modest guidance from upcoming Chinese fourth-quarter gross domestic product report, CBA's Grace added, although he doesn't expect the Aussie dollar to break its recent range of US$0.6934 to US$0.6870.

China will release its GDP figures later in the day (0200 GMT), along with December factory output, retail sales and fixed-asset investment. — Reuters