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Dollar turns broadly higher vs. rivals after PPI data

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Investing.com -

Investing.com - The dollar turned broadly higher against the other major currencies on Friday, after the release of lower than expected U.S. producer price inflation data, while markets still eyed an upcoming report on U.S. consumer sentiment.

The dollar edged higher against the euro, with EUR/USD down 0.07% to 1.3542.

Official data showed that U.S. producer price inflation fell 0.2% in May, confounding expectations for a 0.1% rise, after a 0.6% increase the previous month.

Core producer price inflation, which excludes food, energy and trade, slipped 0.1% last month, compared to expectations for an increase of 0.1%, after a 0.5% rise in April.

The data came after mixed economic reports on Thursday fuelled some concerns over the strength of the U.S. recovery.

The pound was higher against the dollar, with GBP/USD gaining 0.25% to 1.6969.

The dollar was higher against the yen and the Swiss franc, with USD/JPY rising 0.26% to 101.97 and with USD/CHF adding 0.09% to 0.8992.

At its monthly policy-setting meeting, the BoJ said it will continue to expand the monetary base at a pace of ¥60 trillion to ¥70 trillion per year, in a widely expected move.

BoJ Governor Haruhiko Kuroda had said last week that the central bank's easing measures are having the intended effects and are leading to an improvement in the economy.

The greenback was steady to higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.37% to 0.9391, NZD/USD sliding 0.38% to 0.8655 and USD/CAD easing up 0.05% to 1.0859.

Official data showed that manufacturing sales in Canada declined 0.1% in April, disappointing expectations for an increase of 0.9%, after a downwardly revised 0.3% rise in March.

In New Zealand, data earlier showed that the business manufacturing index fell to 52.7 in May, from a reading of 54.4 in April, whose figure was revised down from a previously estimated 55.2.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% to 80.62.

Also Friday, official data showed that industrial production in China rose at an annual rate of 8.8% last month, in line with expectations, after an increase of 8.7% in April. The upbeat data eased concerns over a slowdown in the world's second biggest economy.

Later in the day, the U.S. was to release preliminary data on consumer sentiment from the University of Michigan.

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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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