RTTNews - The dollar dropped sharply versus most majors Friday morning in New York as US stock futures indicated a fourth straight session of modest gains on Wall Street.
With equities and riskier assets looking like an attractive investment, the safe have dollar has fallen versus its higher-yielding counterparts.
Strong economic data from the eurozone kept the recovery trade alive overnight.
The Markit Flash Eurozone Composite Output Index rose to 50 in August from 47 in July. This ended a fourteen-month sequence below the no-change mark of 50.
However, with the consumer in the US moribund, the dollar will likely find support near its 2009 lows, set earlier this month.
The dollar dropped to a two-week low of 1.4335 versus the euro, moving closer to an 8-month low of 1.4446 set earlier in August.
Versus the sterling, the dollar fell to the lower end of a 2-week range, easing to 1.6570. The pair has been choppy for most of August, with the buck stabilizing after hitting a 10-month low of 1.7012.
The dollar failed to make up ground versus the yen, staying near a monthly low of 93.50.
Rising commodities prices hurt the dollar versus resource-linked currencies, particularly the loonie. The buck slipped to a weekly low of C$1.0830, moving back toward a 10-month low of C$1.0630.
The price of crude for the front-month contract rose above $73 a barrel Friday morning.
On the economic front, traders will focus on data related to existing home sales for the month of July, looking to assess the health of the housing sector, one of the weak links in the process of recovery.
For comments and feedback: contact firstname.lastname@example.org