- Citigroup Lost $20 Million on Facebook IPO Trades
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- EU Finalizes Bank Reforms; Shifts Burden to Bondholders
- Spain's Bankia Eyes Stake Sales After Record Bailout
- EU Set to Launch Action Against China Over Telecom Aid
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- Marc Faber: Chance of Global Recession Is Now 100%
- Cool Jobs: From Gold Stacker to Bed Tester
- 'Flash Sale' Sites: Gimmick, or Online Shopping Future?
MOST SHARED
- Fresh Fears as EU Finalises Reform Plans
- Marc Faber: 100% Chance of Global Recession
- Spain's Bankia Eyes Stake Sales After Record Bailout
- Citigroup Lost $20 Million on Facebook IPO Trades
- Beijing Faces Brussels Action on Telecoms Aid
- Zero China Growth Is ‘Probable’: Gordon Chang
- 5 High-Yield Stocks Ready to Boost Dividends
- What Would Greek Exit Mean for the US Economy?
- China Growth Risks Signal Need for Fiscal Action
- GM Discloses $600,000 Contract With Ad Agency Tied to CFO's Wife
MOST POPULAR
HOT ON FACEBOOK
Dollar Falls Against Euro After Posting Strong Gains
Text Size 
The dollar fell to session lows versus the euro and traded flat against the yen as investors took profits ahead of the weekend after recent strong gains in the U.S. currency, traders said.
The euro [EUR-TN
Loading...
()
] was slightly higher against the dollar, after climbing to a session high of more than $1.55. Against the yen, [JPY-TN
Loading...
()
] the dollar was little changed.
 |
A government report on Friday showed U.S. personal spending rose in April in line with forecasts and a key measure of inflation moderated.
In contrast, Euro zone inflation rebounded to its historic peak of 3.6 percent in May, data showed on Friday, while German retail sales unexpectedly fell for the second month in a row in April.
The dollar garnered broad support this week from a further retreat in oil prices from last week's record $135.09 per barrel and a jump in U.S. Treasury yields.
"The personal income and spending report fits in nicely with recent data reflecting a bottom has been put in for the dollar," said Michael Woolfolk, senior currency strategist at Bank of New York Mellon in New York. "The focus right now is also on oil prices."
The euro zone common currency was headed for a second month of declines versus the greenback, according to Reuters data.
European Central Bank President Jean-Claude Trichet in an interview published Friday said that the central bank will do everything it can to preserve price stability and reinforce expectations of low inflation.
"The euro is no different to many other currencies -- stuck between a rock and a hard place with slowing growth and rising inflation," said JP Morgan G10 strategist Kamal Sharma in London.
"Inflation is likely to remain above the ECB's target in the near term. But against the backdrop of slowing growth ... the ECB is unlikely to pull the trigger on rate hikes through the rest of the year."
The dollar index, which tracks the value of the greenback against a basket of six currencies, rose.
Moves in oil prices are seen as key for the dollar as a recent surge has fanned fears about the ability of U.S. consumers and businesses to weather the credit- and housing market-led downturn.
Data is a real-time snapshot *Data is delayed at least 15 minutes
