Investing.com - The dollar was mixed against the other major
currencies on Friday, but still remained within close distance of
an 11-month high as concerns over tensions in Iraq and Ukraine
continued to support safe-haven demand.
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 0.22% to 1.3392, pulling away from nine-month
lows after European Central Bank President Mario Draghi said on
Thursday that interest rates will remain at present levels "for an
extended period of time" and reiterated that the bank was still
committed to using unconventional measures if the outlook
Earlier Friday, official data 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 in June.
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 0.15% to 1.6806
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 sliding 0.30% to 101.78 and with
USD/CHF down 0.29% to 0.9063.
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 slipped lower, with AUD/USD falling
0.19% to a fresh two-month low of 0.9256 after the Reserve Bank of
Australia cut growth and inflation forecasts and reiterated that
interest rates will remain on hold.
Elsewhere, NZD/USD edged down 0.18% to 0.84862 and
USD/CAD dipped 0.01% to 1.0922.
The export-related currencies still found some support after
data showed that China's trade surplus widened to $47.3 billion
last month, from $31.6 billion in June, exceeding market
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.16% to 81.47, still close to Wednesday's 11-month highs of
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