NEW YORK: The dollar shook off its euro doldrums on Friday (Saturday in Manila), strengthening a bit despite some poor US economic data.
After six days of trading lower against the 19-nation currency, the greenback lured buyers in a somewhat depleted foreign-exchange market activity amid Asia and Europe’s May Day holidays.
The euro bought $1.1200 around 7 p.m. local time, down from $1.1224 late Thursday.
Kathy Lien of BK Asset Management noted that the dollar had firmed even as investors weighed a decline in US construction spending and a disappointing ISM report on manufacturing.
On Thursday the dollar fell, despite jobless claims sinking to a 15-year low.
“The fact that many markets in continental Europe were closed contributed to the unusual reaction and the general volatility in the forex market,” she said.
“Fundamentally, the prospect of Fed tightening, the crisis in Greece, upcoming election in the UK and credit problems in China make the dollar an attractive investment,” she said.
The pound traded lower against the euro and the dollar. “A surprise slowdown in UK manufacturing growth to a seven-month low dealt a fundamental setback to the pound,” said Joe Manimbo of Western Union Business Solutions.