Dollar Declines As Strong European Data Boosts Euro

By Daniel Kruger Features Dow Jones Newswires

The dollar fell Friday as strong economic data from the eurozone turned the attention of investors toward the prospect of tighter monetary policy for the region.

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The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.1% to 85.53, amid losses against the euro. The dollar slipped less than 0.1% Thursday.

The euro strengthened as European manufacturers had their strongest output gains since April 2011, while services also gained, according to preliminary Purchasing Managers index data compiled by IHS Markit.

"The issue of the eurozone economy picking up relative to the U.S. is compelling," said Shaun Osborne, a currency strategist at Scotiabank in Toronto.

The euro was recently up less than 0.1% against the dollar at $1.1948. The euro has gained 14% against the dollar this year on improving economic data.

Expectations for higher interest rates make assets denominated in that currency more attractive to yield-seeking investors.

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(END) Dow Jones Newswires

September 22, 2017 18:11 ET (22:11 GMT)