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US dollar gains strength after indicator revisions

The euro eased slightly against the dollar Friday, as the US currency drew strength early in the day from expectations of a US economic recovery in the second half of the year.

Having fallen through the 1.15-dollar level a day earlier, the euro held on above the next symbolic threshold, trading at 1.1415 dollars from 1.1419 late on Thursday in New York.

The dollar rose to ¥119.75 from ¥119.38 on Thursday.

An upward revision to the University of Michigan consumer sentiment helped the dollar. The final reading of the June sentiment index rose to to 89.7 from the preliminary estimate of 87.2.

Economists were expecting sentiment to more modest adjustment to about 87.5.

Parts of the data were seen as hinting at a good reading in next week's non-farm payrolls, according to Julian Jessop at Standard Chartered bank.

The dollar had touched 1.1401 against the euro early in the day, as a sell-off on euro zone bonds also played into the US unit's hands.

"There has been talk in financial markets today that Japanese investors are continuing to cut back on their bond positions and are looking to raise their exposure to stocks -- with an eye on US markets in particular," Bank of New York analysts said.

If this shift becomes entrenched US equity markets are likely to benefit, they added.

"Although the US economy is by no means coming along in leaps and bounds, recent economic data releases suggest that the US is increasingly well placed in terms of recovery this year, particularly when compared with its euro-zone and Japanese counterparts," they said.

Mixed data from Britain had limited impact on the currency market.

The market shrugged off figures early Friday that showed GDP rose just 0.1 percent in the first quarter from the fourth quarter, while the current account recorded a surplus of £2.4 billion (US$4 billion).

A key barometer of consumer confidence -- the GfK index -- later rose modestly this month from the previous month to reach its highest level since November.

The euro was changing hands at US$1.1415 from US$1.1419 late on Thursday in New York, ¥136.68 ( ¥136.34), £0.6932 ( £0.6873) and 1.5444 Swiss francs (Sf1.5437).

The dollar was being quoted at ¥119.75 ( ¥119.38) and 1.3532 Swiss francs (Sf1.3512).

The pound was at US$1.6466 (US$1.6610), ¥197.15 ( ¥198.29) and 2.2281 Swiss francs (Sf2.2443).

On the London Bullion Market, the price of an ounce of gold stood at US$345.50 from US$343.85 on Thursday afternoon.
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