Investing.com - The dollar extended Thursday's gains into Friday
as investors flocked to the greenback after European Central Bank
President Mario Draghi hinted that monetary authorities would feel
at ease implementing fresh stimulus measures in June.
In U.S. trading on Friday, EUR/USD was down 0.66% at 1.3748.
The European Central Bank this week left interest rates
unchanged at 0.25%, though the euro dropped after ECB President
Mario Draghi said the bank's governing council would be comfortable
acting at its next meeting after the bank publishes fresh inflation
and growth forecasts.
Draghi attributed weak inflation rates to food and energy
prices, but added that the strong euro and weak domestic demand are
also pushing down inflation.
He reiterated that the ECB does not have a target for the euro
exchange rate but stressed that the bank would closely monitor
Market talk that fresh easing measures or rate cuts softened the
euro, which boosted the dollar's safe-haven appeal.
The ECB will meet on June 5 to discuss monetary policy.
Elsewhere on Friday, official data revealed that Germany's trade
surplus narrowed to €14.8 billion in March from €15.8 billion in
February, whose figure was revised from a previously estimated
surplus of €15.7 billion. Analysts had expected the trade surplus
to widen to €16.6 billion in March.
Meanwhile, pro-Russia separatists in eastern Ukraine ignored a
public call by Russian President Vladimir Putin to postpone a
referendum on self-rule and said they plan to go ahead on Sunday
with a vote that some fear could lead to a civil war.
European Commission President Jose Manuel Barroso said earlier
that the European Union was still struggling to agree on what
approach to take on the crisis and added the event was the biggest
threat to European security since the fall of the Berlin Wall.
The dollar was up against the yen, with USD/JPY up 0.12% at
101.78 and up against the Swiss franc, with USD/CHF up 0.79% at
The greenback was up against the pound, with GBP/USD down 0.54%
The dollar was up against its cousins in Canada, Australia and
New Zealand, with USD/CAD up 0.64% at 1.0900, AUD/USD down 0.20% at
0.9355 and NZD/USD down 0.36% at 0.8614.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was up
0.62% at 79.97.
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