Investing.com - The dollar dropped against the world's major currencies on Friday as stronger than expected consumer data out of the U.S. coupled with a decision in Europe to fortify a financial firewall sparked demand for riskier assets like stocks, sending investors selling dollars in the process.
The euro firmed against the dollar in U.S. trading Friday, with EUR/USD rising 0.29% and trading at 1.3340, firmer after European finance ministers agreed to hike a combined lending ceiling for two rescue funds to EUR700 billion from EUR500 billion.
News that Spanish Prime Minister Mariano Rajoy is planning to roll out the most austere budget since return to democracy in 1978 also buoyed the euro, as did healthy eurozone inflation rates, which rose 2.6% in March, better than forecasts for a 2.5% gain.
In the U.S. signs that consumers feel better about their future sparked optimism as well, luring investors out of the safety of the dollar and into stocks and other currencies.
The Thomson Reuters/University of Michigan's consumer sentiment index for March rose to 76.2, the highest since February 2011, from 75.3 in February, outpacing analysts' expectations.
The Commerce Department, meanwhile, reported that personal spending rose 0.8% in February, the most in seven months and above expectations for a 0.6% gain, although incomes rose only 0.2%, a little less than expected.
The greenback, meanwhile, was down against the pound, with GBP/USD up 0.21% and trading at 1.5991.
The greenback was up against the yen, with USD/JPY trading up 0.42% at 82.81, and down against the Swiss franc, with USD/CHF trading down 0.38% at 0.9028.
The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.13% at 0.9978, AUD/USD down 0.16% at 1.0367 and NZD/USD up 0.29% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.20% at 79.13.
On Monday in the U.S., the Institute of Supply Management will release its Manufacturing Purchasing Managers Index, while in Europe, German, French and Spanish manufacturing figures are due out as well.
Eurozone unemployment figures will also be released.
The euro firmed against the dollar in U.S. trading Friday, with EUR/USD rising 0.29% and trading at 1.3340, firmer after European finance ministers agreed to hike a combined lending ceiling for two rescue funds to EUR700 billion from EUR500 billion.
News that Spanish Prime Minister Mariano Rajoy is planning to roll out the most austere budget since return to democracy in 1978 also buoyed the euro, as did healthy eurozone inflation rates, which rose 2.6% in March, better than forecasts for a 2.5% gain.
In the U.S. signs that consumers feel better about their future sparked optimism as well, luring investors out of the safety of the dollar and into stocks and other currencies.
The Thomson Reuters/University of Michigan's consumer sentiment index for March rose to 76.2, the highest since February 2011, from 75.3 in February, outpacing analysts' expectations.
The Commerce Department, meanwhile, reported that personal spending rose 0.8% in February, the most in seven months and above expectations for a 0.6% gain, although incomes rose only 0.2%, a little less than expected.
The greenback, meanwhile, was down against the pound, with GBP/USD up 0.21% and trading at 1.5991.
The greenback was up against the yen, with USD/JPY trading up 0.42% at 82.81, and down against the Swiss franc, with USD/CHF trading down 0.38% at 0.9028.
The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.13% at 0.9978, AUD/USD down 0.16% at 1.0367 and NZD/USD up 0.29% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.20% at 79.13.
On Monday in the U.S., the Institute of Supply Management will release its Manufacturing Purchasing Managers Index, while in Europe, German, French and Spanish manufacturing figures are due out as well.
Eurozone unemployment figures will also be released.