Investing.com - The dollar traded largely higher against most
major currencies on Friday amid relief buying after President
Barack Obama ruled out sending U.S. troops to quell a rebellion in
In U.S. trading on Friday, EUR/USD was down 0.13% at 1.3534.
Markets across the globe continued to track a rebellion in Iraq
led by a Sunni Islamist group that threatened to take Baghdad after
capturing key cities elsewhere in the country.
Investors breathed a sigh of relief, however, after U.S.
President Barack Obama said he won't sent troops to Iraq and added
oil continues to flow normally out of the country, which boosted
the dollar by fueling hopes U.S. support will help the Iraqi
government halt the rebellion.
Elsewhere, soft U.S. economic indicators kept the dollar's
advance in check.
In a preliminary report, the Thomson Reuters/University of
Michigan consumer sentiment index fell to 81.2 this month from 81.9
in May, whose figure was revised up from a previously estimated
reading of 81.8. Analysts had expected the index to rise to 83.0 in
Also on Friday, official data showed that U.S. producer price
inflation fell 0.2% in May, confounding expectations for a 0.1%
rise, after a 0.6% increase the previous month.
Core producer price inflation, which excludes food, energy and
trade, slipped 0.1% last month, compared to expectations for an
increase of 0.1%, after a 0.5% rise in April.
Meanwhile in Europe, the euro found some support on Thursday
after data showed that industrial production in the euro zone
increased by 0.8% in April, above forecasts for a 0.4% gain.
Industrial production in March was revised down to a decline of
0.4% from a previously reported drop of 0.3%.
The dollar was up against the yen, with USD/JPY up 0.32% trading
at 102.04 and up against the Swiss franc, with USD/CHF up 0.22% at
At its monthly policy-setting meeting, the Bank of Japan said it
will continue to expand the monetary base at a pace of ¥60 trillion
to ¥70 trillion per year, which weakened the yen and boosted demand
for the dollar.
BoJ Governor Haruhiko Kuroda had said last week that the central
bank's easing measures are having the intended effects and are
helping the economy.
The greenback was down against the pound, with GBP/USD up 0.23%
Markets have long been suspecting the Bank of England to raise
interest rates before other major central banks, and BoE Governor
Carney confirmed those sentiments in a speech he delivered on
"There's already great speculation about the exact timing of the
first rate hike and this decision is becoming more balanced,"
Carney said in prepared remarks of his speech.
"It could happen sooner than markets currently expect."
The dollar was up against its cousins in Canada, Australia and
New Zealand, with USD/CAD up 0.03% at 1.0857, AUD/USD down 0.29% at
0.9399 and NZD/USD down 0.25% at 0.8666.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was up 0.08% at
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