By Hiroyuki Kachi
MADRID (MarketWatch) -- Weak German business-sentiment data
underpinned the U.S. dollar on Friday, and weighed on the single
European currency.
The euro (EURUSD) last traded at $1.3452 from $1.3462 in late
North America trading. The British pound (GBPUSD) fell to $1.6969
from $1.6986.
Against the yen, the U.S. dollar (USDJPY) inched up to Yen101.88
from Yen101.81 late Thursday in New York.
The lead indicator of the Ifo Institute declined to 108.0 in
July after 109.7 in June, the Munich-based group reported Friday.
Experts polled by The Wall Street Journal expected a decline in the
lead indicator to 109.4.
Ifo President Hans-Werner Sinn said geopolitical tensions are
"taking a toll" on Germany's economy, on data that showed an
assessment of the business climate falling in manufacturing,
wholesale, retail and construction. Thursday saw
better-than-expected readings on purchasing managers data.
The Russian ruble (USDRUB) fell against the dollar after
Russia's central bank hiked key interest rates to 8% from 7.5%. The
bank cited higher inflation risks and geopolitical tensions that
could affect the ruble. The ruble most recently traded around 35.13
against the dollar.
"The build-up of these risks will lead to inflation expectations
remaining heightened and creates threats of inflation exceeding the
target in the coming years," said the central bank in a statement
on its website. Russian stocks took a hit on Friday in the wake of
a proposal for tougher sanctions by European Union officials in
connection with the Ukraine crisis.
Durable-goods orders are due later in the U.S., but bigger data
-- nonfarm payrolls -- and a Federal Open Market Committee meeting
are due next week.
The ICE U.S. dollar index (DXY), which measures the greenback's
performance against a basket of six other currencies, rose to
80.939 from 80.870 on Thursday. The WSJ Dollar Index , a measure of
the dollar against a basket of major currencies, was fractionally
lower at 73.26.
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