Dollar mixed after US economic data
NEW YORK The dollar was mixed against other currencies Friday after U.S. economic reports showed very modest inflation and an increase in factory production.
If inflation remains under control, it could mean an extended period of time in which the Federal Reserve can maintain a key interest rate near zero, rather than boost rates to curb rising prices.
"The Fed is still on hold for a long time," said Camilla Sutton, chief currency strategist at Scotia Capital in Toronto.
The Federal Reserve said U.S. factories increased production 0.7 percent last month, the ninth straight month of growth. Separately, the Labor Department said inflation, excluding food and gas prices, rose just 0.1 percent in March from the previous month.
The euro fell to $1.4436 in midday trading Friday from $1.4490 late Thursday. The British pound fell to $1.6309 from $1.6353, and the dollar fell to 83.13 Japanese yen from 83.54 yen.
News from Europe showed that the debt crisis is alive and well. Concerns are growing that Greece, which received a financial aid package last year, will have to restructure debt. And Moody's downgraded its credit rating on Ireland, a country which also received aid last year.
In China, government data showed that inflation rose to a 32-month high, adding pressure for another interest rate hike.
In other trading Friday, the dollar was mixed against other currencies in the world. The U.S. currency edged up slightly to 96.06 Canadian cents from 96.05 Canadian cents late Thursday. The dollar rose to 0.8929 Swiss franc from 0.8925 Swiss franc.
Elsewhere, the dollar was stronger against the Hong Kong currency, but weaker against currencies in Australia, New Zealand and Latin America.
The Associated Press