Investing.com - The greenback traded mixed against most major currencies on Friday, buoyed by expectations for the Federal Reserve to continue tapering its monthly bond-buying program though lower as investors flocked to the yen amid a stock-market selloff.
U.S. trading on Tuesday, EUR/USD was down 0.11% at 1.3682.
Solid economic indicators out of Europe recently sent the single currency to levels ripe for profit taking on Friday.
The euro zone’s composite output index rose to a 31-month high of 53.2 in January, up from a final reading of 52.1 in December, according to industry data released Thursday, which bolstered the euro.
Panic in global stock markets, the product of weak Chinese data and fears that emerging markets are facing headwinds, sent investors ditching high-yielding currencies on Friday.
A preliminary Chinese HSBC Manufacturing PMI released earlier this week fell to 49.6 for January from 50.5 in December, missing market calls for an uptick to 50.6.
A reading under 50 signifies contraction, and the numbers spooked investors with concerns that emerging-market economies may grow less.
Investors fleeing risk in emerging markets avoided U.S. equities as well and sought safety in the yen over the dollar, though the greenback did see support on Fed expectations.
The Federal Reserve will meet next week to address monetary policy, and markets were expecting monetary authorities to trim USD10 billion from the U.S. central bank's USD75 billion monthly bond-buying program, though the U.S. central bank will likely keep its language on the dovish side.
The greenback was up against the pound, with GBP/USD down 0.81% at 1.6503.
In the U.K. earlier, the British Bankers' Association said mortgage approvals rose by GBP46,500 in December, less than the expected 47,200 increase, after an upwardly revised 45,400 rise the previous months.
The dollar was down against the yen, with USD/JPY down 0.94% at 102.31, and down against the Swiss franc, with USD/CHF down 0.30% at 0.8946.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.27% at 1.1070, AUD/USD down 0.71% at 0.8706 and NZD/USD down 0.65% at 0.8248.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 80.54.