Dollar Trims Losses Amid Recovery Hopes

By Ira Iosebashvili Features Dow Jones Newswires

The dollar pared losses Friday, as investors bet the U.S. economy will recover from a first quarter slowdown.

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The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently unchanged at 89.74.

Gross domestic product, the broadest measure of goods and services produced in the U.S., rose 0.7% in the first quarter, its slowest pace since 2014. Economists surveyed by The Wall Street Journal had expected 1% growth.

Nevertheless, some investors believe growth will pick up in coming months after a weak start, as it has in previous years. The weaker-than-expected GDP data offset other positive developments, including a pickup in business investment and a rise in U.S. exports.

"The market is mindful that the underlying health of the economy remains intact," said Joe Manimbo, a strategist at Western Union.

The dollar was recently up 0.2% against the Japanese yen at Y111.50. The euro rose 0.4% to $1.09115. Against the British pound, the dollar rose 0.2% to $1.2925.

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Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

April 28, 2017 10:25 ET (14:25 GMT)