RTTNews - The dollar remained on the ropes versus other major currencies Friday morning in New York after suffering steep losses in the previous session amid renewed optimism that an economic recovery around the bend.

Traders looking for riskier assets established positions in higher-yielding currencies, particularly the euro, as stocks continued to firm up.

Economic data released this morning will play a pivotal part in assessing the mindset of the US consumer. The University of Michigan's consumer sentiment index comes out at 9:55 a.m. ET. Before that, a report on personal income and spending will be released at 8:30 a.m. ET.

The dollar failed to make up much ground versus the euro after being battered yesterday afternoon. The buck was at 1.4362, within a cent of an 8-month low set earlier in August.

Meanwhile, the dollar extended yesterday's losses versus the sterling, further paring its recent gains. The dollar slipped to 1.6370, down a full two cents in the past 24 hours.

The dollar also came under pressure versus the petro-linked loonie as the price of crude rose above $73. The dollar fell to C$1.0800, moving back toward a 10-month low of C$1.0630, set earlier in August.

The dollar edged lower versus the yen, hitting a new monthly low of 93.20 overnight before finding its footing. Core consumer prices in Japan fell at the fastest pace on record for the third straight month in July.

In economic news, Eurozone economic sentiment rose for the fifth consecutive month in August after reaching the trough in March, the latest survey by the European Commission revealed Friday.

The economic sentiment indicator stood at 80.6 in August, up from 76 in July and better than the expected reading of 78.

The British economy shrank 0.7% sequentially in the second quarter, upwardly revised from last month's estimate of a fall of 0.8%, the latest report from the Office for National Statistics showed Friday. The annual rate of decline in GDP was revised to 5.5% from 5.6% in the second quarter.

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