Investing.com - The dollar moved higher against the other major currencies on Friday, as market sentiment weakened amid sustained global growth worries and as the previous session’s upbeat U.S. data continued to support.
EUR/USD was little changed at 1.1018, still close to Wednesday’s one-month low of 1.0979.
The euro strengthened briefly after ECB President Mario Draghi said on Thursday that European markets weathered the post-Brexit volatility with “encouraging resilience”, but reiterated that the central bank is ready to act by using all the instruments available under its mandate if necessary.
Draghi also said the euro zone recovery faces several headwinds, and the risks remain tilted to the downside, citing the UK referendum, slowing emerging markets and the slow pace of structural reforms as key threats.
The comments came after the central bank left its benchmark interest rate unchanged at a record-low 0.0% in a widely expected move.
Earlier Friday, research group Markit said its Flash Euro Zone Composite purchasing managers index, which measures the combined output of both the manufacturing and service sectors dipped from 53.1 in June to 52.9 in July, above forecasts for 52.5.
In Germany, the manufacturing PMI ticked down to 53.7 in July from 54.5, compared to expectations for a fall to 53.5. The services PMI rose to 54.6 this month from 53.7.
The French manufacturing PMI advanced to 50.0 in July from 49.6, while the services PMI ticked up to 50.3 from 49.9.
GBP/USD dropped 0.84% to 1.3122.
Markit said its U.K. manufacturing PMI fell to 49.1 in July from a reading of 52.1 in June. Economists had expected the index to fall to 47.8 this month.
Meanwhile, the U.K. services PMI dropped to 47.4 in July from a reading of 52.3 in June, compared to expectations for a decline to 48.9.
The data added to fears over U.K. growth as investors continue to asses the economic effects of the Brexit vote.
USD/JPY rose 0.36% to 106.24, off the previous session’s seven-week high of 107.48, while USD/CHF added 0.10% to 0.9867.
The yen had strengthened on Thursday after Bank of Japan Governor Haruhiko Kuroda in a BBC interview played down speculation Japan may be preparing "helicopter money" economic stimulus, which essentially consists in injecting cash directly to the economy by printing money.
But the BBC later said its interview with Kuroda had been conducted in mid-June, which pushed the yen back down.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.27% at 0.7473 and with NZD/USD slipping 0.14% to 0.6985.
Elsewhere, USD/CAD gained 0.33% to trade at 1.3129.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.21% at 97.14, re-approaching Wednesday’s four-month highs of 97.37.