RTTNews - The dollar plunged versus other majors Friday morning in New York, extending its steep recent losses against the euro and sterling as traders continued to expressed renewed appetite for riskier assets.

US stocks were poised to end a solid month on a high night, bolstered by speculation that the global economic recovery may kick into high gear before the end of the year.

Earlier in 2009, as the financial crisis lingered on, the safe haven dollar was favored against a basket of currencies. However, as the crisis abated, the dollar has given back a large portion of these gains.

Friday's trading is likely to be impacted by an influx of key economic data. Traders will look to preliminary gross domestic product data for the first quarter, with the contraction in GDP expected to be revised to 5.5 percent from the originally reported 6.1 percent drop.

Shortly after the opening bell, traders will be presented with business activity figures from the Chicago area as well as the Reuters/University of Michigan's revised reading on consumer sentiment for the month of May.

The dollar plummeted to depths not seen in 2009 versus the euro, slipping to 1.4134. Over the past month, the dollar has dropped more than 10 cents, despite concerns about the capacity of the euro area to snap back from recession.

Eurozone annual inflation remained flat in May, a flash estimate from the Eurostat showed Friday. In April, annual inflation stood at 0.6%. Economists had expected prices to rise 0.2% in May from the previous year.

While the buck has certainly seen its share of weakness versus the euro over the past few weeks, its been an even more brutal stretch against the sterling. Back in January, the dollar hit a 23-year high of 1.3501, but with traders now betting that move was significantly overdone, the pair has corrected to leave the dollar at a 6-month low of 1.6125 Friday morning.

UK house prices rose unexpectedly in May to record the largest increase since October 2007, a report from the Nationwide Building Society said Friday.

The house price index rose 1.2% in May from the prior month, reversing a 0.3% decline reported in April. House prices increased for the second time in three months. Economists were looking for a monthly decline of 0.9%.

The dollar dropped versus the yen, slipping to 95.70 from a 2-week high of 97.25. The pair has seen choppy trading of late, but overall the dollar is slightly firmer after Moody's affirmed its AAA rating on the US as stable.

According to data released earlier today, Japanese housing starts declined 32.4% in April on a yearly basis, following a 20.7% fall seen in March. Economists were expecting only a 22% decrease in housing starts.

Soaring commodities prices have recently crippled the dollar against resource-linked currencies, and Friday morning saw the dollar fall further versus the loonie and aussie. Against its Canadian counterpart, the dollar dropped to 1.0990, its lowest level since October 2008.

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