Dollar hits two-month high vs yen on U.S. services data

NEW YORK (Reuters) - The dollar rose to a two-month high against the yen on Wednesday as a stronger-than-forecast private report on the U.S. services sector in July revived bets the Federal Reserve would raise interest rates as early as September.

The Institute for Supply Management said its services sector index rose last month to 60.3, its highest reading since August 2005.

The greenback was last up 0.4 percent at 124.92 yen on the EBS trading system.

The dollar also strengthened against other major currencies. The dollar index erased its earlier losses and was up 0.2 percent at 98.121.

(Reporting by Richard Leong; Editing by Meredith Mazzilli)

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