RTTNews - The euro saw some modest strength against lower-yielding rivals on Friday in New York as global stocks were generally higher, adding to risk appetite. Traders also mulled through a mixed bag of economic data from the Eurozone.

The common currency moved to a near-term highs against the dollar and yen as most of the major European and Asian markets finished in the green. However, the euro gave back some of the gains in mid-day trading, mirroring the direction of the U.S. stocks.

Investors mulled over data showing the German producer price index posted its biggest drop in 22 years, while Italy's unemployment rate rose again. Both reports were in-line with analysts' expectations. On the upside, the French economy is expected to stabilize in the fourth quarter.

The euro touched a weekly high of 1.4011 against the dollar before easing back. The single currency reached as low as 1.3747 earlier in the week. There was no major economic data planned for the U.S.

The euro was little-changed against the yen after giving back a modest morning rally that took the common currency above 135.00. The pair moved near 134.30 in the early afternoon.

The Bank of Japan today released the minutes of its policy board meeting held May 21-22. Minutes of the meeting showed that some Bank of Japan policy board members said the timing of the termination of temporary measures to increase liquidity depends on market conditions.

The euro saw modest weakness against the sterling, moving near 0.8475. The common currency has been trending lower since reaching an eight-day high of 0.8604 yesterday.

European Union leaders have endorsed the candidature of Jose Manuel Barroso for a second term as the head of the 27-nation bloc's executive body.

However, the support of the leaders has to be approved by the next session of the new European Parliament, due mid-next month.

Germany's Federal Statistical Office said today 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 producer prices figure in May came in line with economists' expectations. A year ago, the PPI had grown 5.3%.

On a monthly basis, the PPI remained unchanged in May, compared with a 1.4% fall in the preceding month.

The INSEE expects the French economy to stabilize in the fourth quarter after contracting 0.6% in the second quarter and 0.2% in the third quarter of the year. In the first quarter, the economy shrank 1.2%. The economy is forecast to contract 3% for the whole of the year after showing 0.3% growth in the previous year.

Adding to euro's slide, another report showed that Italy's seasonally adjusted jobless rate rose to 7.3% in the first quarter from an upwardly revised 7% recorded in the final quarter of the previous year. The jobless rate, which is reportedly the highest in three years, matched economists' expectation.

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