RTTNews - The dollar paused versus other majors Friday in New York as traders took a step back to assess the precarious global recover. The release of lackluster consumer confidence numbers did nothing to help the dollar out of its doldrums, while gains on Wall Street once again offered support for its higher-yielding counterparts.
Increased risk aversion drove the dollar to multi-month lows against most majors this spring, and while the dollar has stabilized of late, it has been unable to sustain any meaningful rebound.
In quiet dealing, the dollar held near the 1.4000 mark versus the euro, staying away from a 5-month low of 1.4338, set earlier in June. Meanwhile, the dollar edged higher in early dealing versus the sterling, only to ease back to 1.6450. Still, the dollar did manage to avoid extending a 6-month low of 1.6662, set June 3.
Industrial production in the euro area fell at its fastest pace on record in the face of sluggish demand, official data showed Friday.
Factory output dropped 21.6% year-on-year in April after falling a revised 19.3% in March, the Eurostat said. Meanwhile, economists had forecast a decline of 19.8%. On a monthly basis, production was down 1.9% following a fall of 1.4% in the previous month.
Versus the yen, the buck barely budged, consolidating its recent gains by hovering just above 98. Earlier this week, the buck hit a monthly high of 98.87 versus the slumping Japanese currency.
Here in the US, the Labor Department released its report on import and export prices in the month of May, showing another notable increase in import prices amid a jump in the prices of petroleum imports.
The report showed that import prices rose 1.3 percent in May following a revised 1.1 percent increase in April. The continued increase in prices was largely due to an 8.3 percent increase in petroleum import prices.
Consumer sentiment has continued to improve in the month of June, according to a report released by Reuters and the University of Michigan on Friday, although the consumer sentiment index rose by less than expected.
The report showed the preliminary reading of the consumer sentiment index for June came in at 69.0 compared to a reading of 68.7 in May. Economists had been expecting a somewhat more notable increase to a reading of 69.5.
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