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Dollar pushes higher vs. rivals after upbeat U.S. data

Published 05/17/2013, 11:07 AM
Updated 05/17/2013, 11:08 AM
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Investing.com - The U.S. dollar pushed higher against the other major currencies on Friday, as strong U.S. data lent further support to the greenback after a regional Federal Reserve chairman said the U.S. central bank may taper its asset buying program as soon as this summer.

During U.S. morning trade, the dollar was steady against the euro, with EUR/USD retreating 0.41% to 1.2828.

In a preliminary report, the University of Michigan said its consumer sentiment index rose to 83.7 in May, from a reading of 76.4 the previous month, beating expectations for a a rise to 78.0.

The University of Michigan also said its inflation expectations for this month remained unchanged at 3.1%.

The greenback strengthened broadly earlier, after John Williams, president of the Federal Reserve Bank of San Francisco, said the Fed could begin reducing its monetary easing this summer and end bond buying late this year.

Meanwhile, the euro remained under pressure as recent disappointing data out of the euro zone fuelled speculation over an additional rate cut by the European Central Bank to bolster growth.

The greenback was higher against the pound, with GBP/USD declining 0.51% to 1.5190.

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY advancing 0.62% to trade at 102.89, and with USD/CHF gaining 0.74% to 0.9721.

Official data earlier showed that core machinery orders in Japan rose 14.2% in March, blowing past expectations for a 2.8% increase, after a 7.5% gain the previous month.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 0.78% to 1.0270, AUD/USD shedding 0.68% to 0.9741 and NZD/USD tumbling 0.96% to 0.8077.

Earlier Friday, official data showed that producer price inflation input in New Zealand rose 0.8% in the first quarter, more than the expected 0.3% increase, after a 0.3% fall in the previous quarter.

Producer price inflation output rose 0.8% in the last quarter, beating expectations for a flat reading, after a 0.1% decline in the fourth quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.51% to 84.33.


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