The U.S. dollar edged higher against a basket of major currencies on Friday after strong data on U.S. consumer sentiment calmed nerves after a week of severe market volatility.
The Thomson Reuters/University of Michigan preliminary October reading on the overall index on consumer sentiment came in at 86.4, the highest since July 2007 and marking an unexpected gain.
The data eased traders' concerns after worries surrounding the health of the global economy shook stocks, bonds and currencies markets this week. The dollar had gained against the euro, , and Swiss franc earlier in the session on greater stability in markets.
Commerce Department data earlier in the session showing U.S. housing starts and permits rose in September had little impact on the dollar. Federal Reserve Chair Janet Yellen said Friday the growth of economic inequality in the United States ``greatly'' concerned her, but her comments had little impact on currency markets.
The euro was last down against the dollar at $1.2771, just off a session low of $1.2755. The dollar was up against the yen at 106 yen after earlier hitting a session high of 106.77 yen.
The dollar was up against the Swiss franc to trade at 0.9448 franc after hitting a session high of 0.9453 franc. The dollar index, which measures the greenback against a basket of six major currencies, was up at 85.13.
On Wall Street, U.S. stocks were higher following a batch of solid earnings reports, with the benchmark Standard & Poor's 500 stock index up 1.58 percent. U.S. Treasuries prices fell on the bounceback in Wall Street and European stock markets.