Investing.com - The dollar traded lower against most major
currencies on Friday after industrial production data revealed
activity at U.S. factories, mines and utilities was weaker in
October than anticipated, while Federal Reserve Chair Nominee Janet
Yellen's dovish Thursday testimony before Congress also weighed on
In U.S. trading on Thursday, EUR/USD was up 0.25% at 1.3492.
The Federal Reserve reported earlier that U.S. Industrial
production edged down 0.1% in October after having increased 0.7%
Analysts were expecting a 0.2% expansion, and the surprise
contraction weakened the dollar by fanning sentiments the Fed won't
scale back its USD85 billion in monthly bond purchases until early
Bond purchases aim to spur recovery by driving down long-term
interest rates, weakening the dollar in the process.
On Thursday, Fed Chair Nominee Janet Yellen told the Senate Banking
Committee that while the economy is on the mend, inflation and
unemployment rates have room to move closer to Fed comfort zones,
which markets interpreted as a sign the U.S. central bank wants to
see consistent improvements to economic indicators before winding
down stimulus tools.
Her comments put to rest lingering expectations that the Fed may
announce plans to scale back stimulus tools at its December
Also in the U.S., the Federal Reserve of Bank of New York said its
manufacturing activity index declined to -2.21 in November from
1.52 in October, defying expectations for a rise to 5.00, which
added to the dollar's decline.
A separate report showed that U.S. import prices fell 0.7% in
October compared to expectations for a 0.4% decline after a
downwardly revised 0.1% rise the previous month.
Meanwhile in the euro zone, official data released earlier revealed
that consumer price inflation remained slipped 0.1% in October from
September and rose 0.7% on year, both in line with expectations.
Core consumer price inflation, which is stripped of volatile food,
energy, alcohol and tobacco items, came in unchanged from September
and rose 0.8% from a year earlier, also in line with market
The greenback was down against the pound, with GBP/USD up 0.31% at
The dollar was up against the yen, with USD/JPY up 0.18% at 100.21,
and down against the Swiss franc, with USD/CHF down 0.17% at
The dollar was down against its cousins in Canada, Australia and
New Zealand, with USD/CAD down 0.20% at 1.0446, AUD/USD up 0.57% at
0.9370 and NZD/USD trading up 0.77% at 0.8338.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.18% at
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