Investing.com - The dollar traded largely lower against most
major currencies on Friday as markets shrugged off hawkish comments
from a Federal Reserve official and bet that benchmark interest
rates will stay low well into 2015.
In U.S. trading on Friday, EUR/USD was up 0.25% at 1.3645.
The dollar fell on Friday after markets bet the Federal Reserve
will keep interest rates low for some time to come.
On Thursday, St. Louis Federal Reserve President James Bullard
told Fox Business Network that an improving economy may make
conditions ripe for interest rates to rise possibly in early
The dollar rose initially on the news, though investors digested
Bullard's comments and took them in stride, as he is a known
inflation hawk and is a non-voting member of the Federal Open
Market Committee, which allowed for profit taking on Friday despite
positive U.S. data.
The revised Thomson Reuters/University of Michigan consumer
sentiment index rose to 82.5 in June from 81.2 in May, beating
expectations for a 82.2 reading.
In the euro zone, preliminary data on Friday showed that German
consumer price inflation rose 0.3% this month, more than the
expected 0.2% gain, after a 0.1% fall in May.
A separate report showed that Spain's CPI rose at an annual rate
of 0.1% in June, compared to expectations for a 0.3% rise, after a
0.2% increase in May.
Official data earlier showed that French consumer spending rose
1% in May, exceeding expectations for a 0.4% gain, after a 0.2%
fall in April, whose figure was revised from a previously estimated
The dollar was down against the yen, with USD/JPY down 0.33% at
101.39, and down against the Swiss franc, with USD/CHF down 0.28%
In Japan, official data earlier showed that household spending
dropped by an annual rate of 8.0% last month, compared to
expectations for a 2.0% decline, after a 4.6% fall in April.
Data also showed that Tokyo core consumer price inflation, which
excludes food, remained unchanged at an annual rate of 2.8% in
June, in line with expectations.
In addition, a government report showed that Japan retail sales
fell 0.4% in May compared to a year earlier, less than the expected
1.8% decline and after a 4.4% drop in April.
The greenback was up against the pound, with GBP/USD down 0.04%
The Office for National Statistics said U.K. gross domestic
product expanded by 0.8% in the first quarter, in line with market
A separate report showed that the U.K. current account deficit
narrowed to £18.5 billion in the three months to April, from £23.5
billion in the fourth quarter of 2013 whose figure was revised down
from a previously estimated deficit of £22.4 billion.
Analysts had expected the current account deficit to narrow to
£17.5 billion in the first quarter.
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.24% at 1.0663, AUD/USD up
0.05% at 0.9420 and NZD/USD down 0.07% at 0.8774.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.21% at
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