Dollar mixed vs. rivals, remains supported by U.S. data
San Francisco (Nov 22) The dollar was mixed against the other major currencies on Friday, but remained supported as positive U.S. economic reports on Thursday fuelled further expectations for the Federal Reserve to begin scaling back its stimulus program in the near future.
During European morning trade, the euro edged higher against the dollar with EUR/USD up 0.24% at 1.3513.
The euro gained ground after the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month.
The data conforted the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month.
The single currency also remained supported after European Central Bank President Mario Draghi downplayed speculation that the bank was actively considering whether to cut deposit rates into negative territory.
Meanwhile, demand for the dollar remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to 323,000.
The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the "coming months" if the economy continues to improve as expected.
The greenback was steady against the pound, with GBP/USD up 0.02% at 1.6202.
The dollar was little changed against the yen with USD/JPY inching up 0.01% at 101.17, and lower against the Swiss franc with USD/CHF slipping 0.19% at 0.9111.
The dollar was broadly higher against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.36% at 1.0556, AUD/USD sliding 0.67% at 0.9174 and NZD/USD edging down 0.15% at 0.8193.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% at 80.90.