Dollar Rallies ahead of Economic Data
The dollar Friday advanced against some major currencies, recovering somewhat from recent declines ahead of a busier week of U.S. economic data.
Near 2200 GMT, the euro traded at $1.3338 Friday, down from $1.3380 Thursday.
The dollar rose against the British pound and Swiss franc.
But the dollar fell to 96.24 yen from 96.65 yen.
The euro also fell against the yen, hitting 128.35 from 129.31.
Heading into Friday, the dollar had been in a weak patch, declining Thursday to its lowest level against the euro in seven weeks.
Kathy Lien, managing director at BK Asset Management, attributed the dollar's decline since mid-July to a slide in U.S. bond yields after some U.S. economic data disappointed. Some analysts believe the data suggests a slower time-table for the Federal Reserve to taper its aggressive bond-buying program.
But that left the dollar positioned the dollar for a rally Friday, said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"America's currency caught a bit of a reprieve from days of selling as investors took its dip as a good buying opportunity, given the dollar's rosier longer-term outlook," Manimbo said.
Whether the dollar keeps climbing will depend on next week's U.S. economic data, said Lien. The releases next week include retail sales, industrial production and housing starts.
"If the data beats expectations, the dollar could stabilize," Lien said. "However if the data falls short ... the dollar could extend its losses."
Among other currencies, the pound slipped to $1.5506 from $1.5538 Thursday.
The dollar rose to 0.9222 Swiss franc from 0.9200.
Source: Agence France Presse
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