Investing.com - The dollar traded mixed to lower against most
major currencies on Friday after a key European Central Bank
official warned against keeping interest rates low, which sparked
demand for the euro.
In U.S. trading on Friday, EUR/USD was up 0.45% at 1.3753.
European Central Bank Governing Council member Jens Weidmann said
earlier that keeping interest rates low may endanger political
According to Germany's Bild newspaper, Weidmann said low inflation
shouldn't be used to justify loose monetary policy.
"We must take care to raise interest rates again in a timely manner
should inflation pressures build," he reportedly said, and his
comments sent the euro firming against the dollar.
The euro shot up by more than 1% earlier though it trimmed gains
The dollar, meanwhile, saw some support from U.S. Department of
Labor Thursday data revealing that the number of individuals filing
for initial jobless benefits declined by 42,000 to a seasonally
adjusted 338,000 last week.
Analysts were expecting U.S. jobless claims to fall by 35,000 to
345,000 from the previous week's revised total of 380,000, which
was the highest since March.
The upbeat data supported views that the U.S. economy will be
strong enough to allow the Federal Reserve to continue scaling down
stimulus through 2014, which cushioned the dollar somewhat.
The greenback was down against the pound, with GBP/USD up 0.37% at
The dollar was up against the yen, with USD/JPY up 0.31% at 105.13,
and down against the Swiss franc, with USD/CHF down 0.54% at
In Japan, hit-or-miss data weakened the yen against the single
Official data earlier showed that household spending in Japan fell
0.2% in November compared to a year earlier and after a 0.9% rise
in October. Analysts had expected household spending to increase by
1.7% last month.
A separate report showed that Tokyo's core consumer price
inflation, which excludes fresh food, rose at an annualized rate of
0.7% in December, in line with expectations, after a 0.6% rise the
Preliminary government data also showed that industrial production
in Japan ticked up 0.1% last month, confounding expectations for a
0.4% increase after rising 1% in October.
In addition, data showed that Japan's retail sales rose 4% in
November on year, above expectations for a 2.9% gain. October's
retail sales rose 2.3%.
The dollar was up against its cousins in Canada, Australia and New
Zealand, with USD/CAD up 0.59% at 1.0711, AUD/USD down 0.34% at
0.8866 and NZD/USD trading down 0.13% at 0.8155.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.22% at
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
Investing.com Stocks & Finance App