Dollar pares gains vs. rivals but remains supported

Shutterstock photo - The U.S. dollar pared gains against the other major currencies on Friday, after news of a final deal on a bailout for Cyprus, although concerns over the strength of the economic recovery in the U.S. weighed on the greenback.

During U.S. morning trade, the dollar was steady against the euro, with EUR/USD easing 0.06% to 1.3091.

At a meeting in Dublin, euro zone finance ministers backed a EUR10 billion bailout for Cyprus and the European Commission said it would try to help the island's economy grow again with better use of EU structural funds.

The ministerial support opens the way for several euro zone countries to seek approval for the three-year bailout in national parliaments in order for the loan agreement to be signed by April 24.

In addition, European Union finance ministers agreed to extend the maturities of emergency loans extended to Ireland and Portugal by seven years.

Earlier Friday, official data showed that industrial production rose 0.4% in February, more than the expected 0.3% increase, after a 0.2% rise the previous month.

The greenback was higher against the pound, with GBP/USD slipping 0.14% to 1.5363.

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY retreating 0.76% to trade at 98.89, and with USD/CHF edging down 0.17% to 0.9293.

Bank of Japan Governor Haruhiko Kuroda earlier said the central bank will not set a time limit for easing and will continue until it achieves sustainable inflation.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.19% to 1.0123, AUD/USD falling 0.22% to 1.0522 and NZD/USD retreating 0.45% to 0.8592.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% to 82.33.

In the U.S., the University of Michigan said its index of consumer sentiment declined far more-than-expected in April, falling to 72.3 from a reading of 78.6 the previous month. Analysts had expected the index to tick down to 78.5 this month.

The report came after official data showed that retail sales in the U.S. fell 0.4% in March, disappointing expectations for a 0.1% rise, after a 1% increase the previous month.

Core retail sales, which exclude automobiles also slipped 0.4% last month, after a 1% increase in February, compared to expectations for a 0.1% rise.

A separate report showed that U.S. producer price inflation, including food and energy, ticked down 0.6% in March, more than the expected 0.2% slip, after a 0.7% gain the previous month.

Core producer price inflation rose 0.2% last month, in line with expectations, following a 0.2% increase in February.

Investors were also eyeing an upcoming speech by Federal Reserve Chairman Ben Bernanke for indications of the future possible direction of monetary policy. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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