Forexpros - The U.S. dollar was
broadly higher against its major counterparts on Friday, as global growth
concerns supported demand for the safe haven greenback, while investors eyed
the release of U.S. data later in the day as well as ongoing euro zone meetings.
During European late morning trade,
the dollar was higher against the euro, with EUR/USD falling 0.19% to 1.2541.
Sentiment on the single currency
remained fragile amid ongoing euro zone talks, after German Chancellor Angela
Merkel said that she and French President Francois Hollande will maintain
pressure on Greece to overhaul its economy at meetings with Prime Minister
Antonis Samaras in Berlin later Friday and on Saturday.
Separately, the Financial Times
Deutschland reported that a working group led by Germany's deputy finance
minister is studying the possible economic impact of a Greek exit from the euro
zone.
The news came a day after data showed
that manufacturing activity in the euro zone rose more-than-expected in August,
but remained in contraction territory for the 12th consecutive month, while
service sector activity slumped to a two-month low.
Meanwhile, market participants eyed
the release of U.S. economic data later in the day, as reports on Thursday
painted a mixed picture of the country's economic recovery, prompting investors
to temper expectations for a third round of quantitative easing by the Federal
Reserve to boost growth.
The greenback was steady against the
pound, with GBP/USD easing 0.09% to 1.5849.
Sterling was little changed after
revised data showed that the U.K. economy contracted less than initialy
estimated in the second quarter, although the country remained in contraction
territory for the third consecutive quarter.
The U.K. Office for National
Statistics said that the country's gross domestic product fell by 0.5% in the
second quarter, revised from the previously estimated 0.7% decline.
Elsewhere, the greenback was
fractionally higher against the yen and the Swiss france, with USD/JPY edging
up 0.07% to hit 78.53, and USD/CHF adding 0.19% to trade at 0.9576.
Earlier in the day, Bank of Japan
Governor Masaaki Shirakawa warned of a possible delay in China's economic
pickup and a strong yen that could add pain to Japan's economic recovery,
signaling the bank's readiness to offer monetary stimulus if risks heighten
further.
The comments came after a report on
Thursday showing that manufacturing activity in China slumped to a nine-month
low in August added to concerns over a global economic slowdown.
In addition, the greenback was mixed
against its Canadian, Australian and New Zealand counterparts, with USD/CAD
dipping 0.07% to 0.9932, AUD/USD dropping 0.37% to 1.0402 and NZD/USD slipping
0.27% to hit 0.8106.
Reserve Bank of Australia Governor
Glenn Stevens signalled earlier that interest rates are likely to stay on hold
unless there is a drastic change to the central bank's optimistic outlook for
the economy.
The dollar index, which tracks the
performance of the greenback versus a basket of six other major currencies, was
up 0.08%, to trade at 81.45.
Later in the day, the U.S. was to
release government data on durable goods orders.
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