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US dollar edges up, remains under heavy pressure

The US dollar edged slightly higher against the euro on Friday, but remained under heavy pressure and failed to take full advantage of stronger-than-expected data from the US. The euro in late-day trading was at US$1.4165 after US$1.4195 late on Thursday in New York.

US retail sales, a crucial motor of economic growth, rose 0.6 percent last month as US consumers boosted their spending, a government report showed on Friday.

The reading defied expectations as most economists were anticipating a tepid 0.2 percent rise in overall sales.

In another report the government said surging energy costs pushed up wholesale prices by a sharp 1.1 percent last month. But the core rate of inflation viewed as more important by economists remained tame.

The producer price index (PPI) showed a much steeper gain than the 0.5 percent increase expected on Wall Street, while the core rate, watched closely by economists since it excludes volatile food and energy components, was up just 0.1 percent, below the consensus forecast with a 0.2 percent increase.

In late European trading on Friday, the euro changed hands at US$1.4165, against US$1.4195 late on Thursday, ?166.39 (?166.48), ?0.6995 (?0.6986) and 1.6803 Swiss francs (SF1.6779).

The US dollar stood at ?117.49 (?117.27) and SF1.1861 (SF1.1819).

The pound was being traded at US$2.0338 (US$2.0316).

In London, the price of gold edged up to US$749.50 per ounce at the morning fixing from US$749.00 late on Thursday.
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