Investing.com - The dollar remained supported near 11-month
highs against the other major currencies on Friday, as concerns
over mounting tensions in Iraq and Ukraine continued to support
demand for the greenback.
Markets were jittery after U.S. President Barack Obama on
Thursday authorized air strikes in Iraq to put an end to an
onslaught by Islamic militants and begun military air-drops of
humanitarian supplies to besieged religious minorities to prevent a
"potential act of genocide".
Fresh tensions between Russia and the West over Ukraine also
weighed, as Moscow banned imports of most food from the West on
EUR/USD rose 0.20% to 1.3389, pulling away from nine-month
lows touched on Wednesday.
Official data earlier showed that Germany's trade surplus
narrowed to €16.2 billion in June, from €18.8 billion in May.
Analysts had expected the trade surplus to narrow to €17.5 billion
A separate report showed that French industrial production rose
1.3% in June, exceeding expectations for a 1.0% gain, after a
decline of 1.6% in May, whose figure was revised from a previously
estimated 2.3% drop.
The pound edged lower, with GBP/USD slipping 0.18% to 1.6800
after official data showed that the U.K. trade deficit widened to
£9.41 billion in June, from £9.15 billion in May, whose figure was
revised from a previously estimated £9.20 billion. Analysts had
expected the trade deficit to narrow to £8.80 billion in June.
The dollar was lower against the safe-haven yen and Swiss franc,
with USD/JPY slipping 0.11% to 101.96 and with
USD/CHF down 0.25% to 0.9065.
At the conclusion of its monthly policy meeting, the Bank of
Japan maintained its pledge to increase the monetary base at an
annual pace of 60 trillion yen to 70 trillion yen.
The Australian dollar held steady, near two-month lows at 0.9275
after the Reserve Bank of Australia cut growth and inflation
forecasts and reiterated that interest rates will remain on
Elsewhere, NZD/USD edged down 0.07% to 0.8471 and
USD/CAD rose 0.25% to 1.0950.
In Canada, official data showed that the number of employed
people rose by 200 last month, disappointing expectations for an
increase of 20,000, after a 9,400 decline in June.
However, the report also showed that Canada's unemployment rate
ticked down to 7.0% in July, from 7.1% the previous month, in line
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.15% to 81.48, still close to Wednesday's 11-month highs of
Also Friday, the U.S. Labor Department said, in a preliminary
report, that nonfarm productivity rose 2.5% in the second quarter,
beating expectations for a 1.5% increase. The first quarter's
figure was revised to a 4.5% drop from a previously estimated 3.2%
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