The US dollar rose against other major currencies on Friday after a week of strong economic data dispelled expectations that the Federal Reserve may cut interest rates in the near term.
In afternoon New York trading, the 12-nation euro bought US$1.3078, down from US$1.3152 late on Thursday in New York. The British pound also slipped to US$1.9503 from US$1.9611.
Yen
The US dollar strengthened against the Japanese currency, rising to ¥118.16 from ¥117.86 late on Thursday.
"The view that the Fed is going to cut rates has been scaled back on stronger economic data this week,'' said Dan Katzive, a currency strategist at UBS AG.
The markets are more convinced that the central bank has achieved its goal of slowing the economy, but avoiding higher inflation or a recession, Katzive said.
On Thursday, the Labor Department reported that the number of US workers filing for jobless benefits dropped last week following a second sharp decline the previous week. The drops supported the view that employers are anticipating an economic rebound next year despite the slowdown this year.
Meanwhile, the Commerce Department said on Wednesday that retail sales rose by 1 percent last month, following two straight months of declines and exceeding economists' expectations of a 0.1 percent gain.
Business inventories also came in below estimates and offered a sign that companies are keeping inventories under control.
Interest rate
On Tuesday, the Fed kept its benchmark interest rate unchanged at 5.25 percent as expected, the fourth such decision in a row after a string of increases since 2004.
Higher interest rates support a currency by making assets denominated in that currency more attractive to investors.
In other New York trading, the US dollar bought 1.2221 Swiss francs, up from 1.2142 late on Thursday, and 1.1577 Canadian dollars, up from 1.1568.
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