The dollar traded near a three-month high against the yen in Forex Trading

The dollar traded near a three-month high against the yen in Forex Trading before data that economists said will show U.S. housing starts and building permits rose last month.

The U.S. currency held onto yesterday’s gains against most major counterparts after Treasury 10-year yields advanced to a seven-month high, attracting demand for U.S. assets.

The euro maintained yesterday’s drop versus the yen as Spain prepares for its final bond sale of the year today amid concern it will follow Greece and Ireland in needing a bailout.

The dollar traded at 84.22 yen as of 10:35 a.m. in Tokyo from 84.24 yen in New York yesterday, when it touched 84.51, the most since Sept. 24. The dollar was at $1.3228 per euro from $1.3214, following a 1.2 percent gain yesterday.

The euro fetched 111.41 yen from 111.32 yen, after dropping 0.5 percent yesterday.

The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, was little changed at 80.165 after rising as much as 1.2 percent yesterday.

U.S. housing starts rose to a 550,000 annual rate in November from 519,000 in October, according to the median estimate of economists in a Bloomberg News survey before the Commerce Department releases the data today.

Building permits, a sign of future activity, gained 1.5 percent to a 560,000 rate last month, according to another Bloomberg survey before today’s data.

Treasury 10-year yields yesterday increased to as high as 3.56 percent, the most since May, on speculation President Barack Obama’s agreement to extend tax cuts will pass in Congress, supporting growth and increasing the budget deficit. The yields dropped four basis points today to 3.489 percent.

The U.S. Senate passed an $858 billion tax-cut plan yesterday. The 81-19 vote sends the bill to the House, where Democratic leaders are likely to bring it to the floor today.