The U.S. dollar found itself trading higher against its rival currencies on Friday, with analysts pointing to the grim outlook in Europe as a possible cause.
MarketWatch reported that the ICE U.S. dollar index, a measure of the greenback's strength against a basket of six rival currencies, was at 85.8440 Friday compared with 85.5220 Thursday. Additionally, Futures Magazine reported that the The Bloomberg Dollar Spot Index, which tracks the dollar against 10 major counterparts, rose 0.3 percent to 1,068.79 as of 9:04 a.m. New York time.
According to MarketWatch, troubling French industrial data and lower projections for German economic growth forecasts may be leading to the perception that European growth is stagnant and possibly near a recession. The euro traded at $1.2640 Friday, compared with $1.2688 late Thursday – most likely owing to the disturbing data released by key euro zone countries. The speech by European Central Bank President Mario Draghi also led some analysts to the conclusion that the euro zone is headed for a slowdown, weakening demand for the euro and boosting demand for haven assets.
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