RTTNews - The dollar extended its run of choppy trading versus the euro and sterling while pushing ahead versus the yen Friday morning in New York, as traders continued to scrutinize evidence indicating the downtrodden economy may be getting back on its feet.
While there are no major economic reports due Friday, there are a number of key reports due out early next week, including data on home sales and orders of durable goods.
Yesterday, stocks snapped their 3-day losing streak and ended in positive territory following a sharp weekly drop in continuing claims for the week ended 6th June 2009. Better-than expected Phil Fed Index and leading indicators index for May lifted market sentiment.
The dollar barely budged versus the euro, staying near 1.3900. Traders seem unsure about the direct of either currency, weighing the longterm impact of historic government spending on the greenback versus speculation that the eurozone will be stuck in an economic rut far longer than the US.
Germany's Federal Statistical Office said Friday that the producer price index or PPI dropped 3.6% year-over-year in May, after falling 2.7% in April. This was the lowest annual rate of PPI since April 1987.
The dollar eased a bit versus the sterling, but managed to stay well within a weekly trading range. After seeing virtually no movement overnight, the dollar slipped a penny to 1.6435, continuing to hover close to a 6-month low of 1.6662, set in early June.
The dollar remained in rebound mode versus the yen Friday morning, rising to 97 after hitting a 2-week low near 95.50 on Wednesday.
The Bank of Japan's board members said that the move that allowed foreign debt to be used as collateral could possibly become a permanent condition, minutes from the May 21 and 22 monetary policy meeting revealed on Friday.
Versus Canada's petro-linked loonie, the buck held near C$1.13 as the price of oil remained above $72 a barrel.
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