Markets

Dollar pushes higher with focus on Yellen speech

Investing.com -

Investing.com - The dollar pushed higher against the other major currencies on Friday, despite the release of downbeat U.S. economic reports, as investors awaited a speech by Federal Reserve Chair Janet Yellen scheduled later in the day.

USD/JPY was down 0.13% at 109.90.

In a revised report, the University of Michigan said its consumer sentiment index dropped to 94.7 in May from the initial reading of 95.8 and April's tally of 89.0. Analysts had forecast a reading of 95.4.

The report came after official data showed that the second estimate of U.S. first quarter gross domestic product rose 0.8%, revised up from the initial reading of a 0.5% rise. Analysts had expected growth to settle at 0.9%.

Investors were eyeing comments by Fed Chair Janet Yellen due later Friday, for futher hints on the timing of future rate hikes by the U.S. central bank.

The greenback posted sharp gains earlier in the week amid expectations for the Fed to raise interest rates in the near term after last week's April Fed meeting minutes flagged a possible rate hike if the economy continues to improve.

Meanwhile, traders remained cautious with the yen after Group of Seven leaders said in a statement late Thursday that they committed to avoiding "competitive devaluation" of their currencies and warned against "disorderly" exchange-rate moves.

EUR/USD declined 0.53% to 1.1135.

The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.25% at 1.4634 and with USD/CHF rising 0.32% to 0.9925.

The Australian and New Zealand dollars slipped lower, with AUD/USD down 0.53% at 0.7188 and with NZD/USD sliding 0.45% to 0.6710.

Elsewhere, USD/CAD gained 0.45% to trade at 1.3037.

The commodity-currencies weakened as oil prices turned lower on Friday, amid fresh global supply glut concerns.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.42% at 95.54, re-approaching Wednesday's two-month highs of 95.66.

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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.

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