Dollar gains on euro helped by industrial, jobs data

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WASHINGTON: The US dollar rose against the euro Friday helped by better-than-expected data on US industrial output, housing and the jobs market.

The data showed a solid US economy in December, with industrial production gaining 0.3 per cent and a surge in job vacancies suggesting a tightening of the employment market. Housing starts fell as expected in December from November's five-year high, but the fall was not as much as expected and the pace of homebuilding remained strong.

At 2200 GMT, the euro bought $1.3535 compared to $1.3619 late Thursday.

The dollar was virtually flat against the Japanese currency at 104.30 yen, while the euro fell to 141.17 yen from 142.10 yen.

Data from Nomura confirmed a shift into the dollar against a sell-off of mainly European currencies, amid more confidence in the US economy.

The British pound turned back upwards on rising expectations of some tightening later this year from the Bank of England.

“The British Pound appears to be coiling up for another run at the $1.6600 (level) as the positive developments coming out of the UK economy raises the Bank of England's scope to normalize monetary policy ahead of schedule,” said David Song of DailyFX.

The pound was at $1.6414, up from $1.6353 Thursday. The dollar rose to 0.9106 Swiss franc from 0.9048 franc.


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