Investing.com - The dollar traded higher against most major currencies on Friday on news that U.S. demand for long-lasting goods and appliances was stronger in June than markets were expecting, though geopolitical concerns dampened the greenback's gains.
In U.S. trading on Friday, EUR/USD was down 0.23% at 1.3432.
The Census Bureau reported earlier that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain, after declining of 1% in May, whose figure was revised from a previously estimated 0.9% contraction.
Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain, after a 0.1% downtick in May, whose figure was revised from a previously estimated flat reading.
The data came a day after the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to 284,000, defying market forecasts for claims to rise by 5,000.
The data primed market expectations for the Federal Reserve to wind down its bond-buying stimulus program around October and raise interest rates in 2015.
Geopolitical concerns capped the dollar's advance by stoking fears events in Ukraine and the Middle East will drag on global growth.
The Pentagon said earlier that Russia may be set to provide more sophisticated weapons to Ukrainian separatists, which spooked investors, sending them away from the dollar and stocks and into gold in search of safety.
Israel, meanwhile, rejected calls for a ceasefire and continued its ground offensive in Gaza.
The euro, meanwhile, came under pressure after Ifo Institute for Economic Research reported earlier that its German business climate index fell to a nine-month low of 108.0 this month, down from 109.7 in June. Analysts had expected the index to tick down to 109.4 in July.
A separate report showed that the Gfk German consumer climate index rose to a seven-and-a-half-year high of 9.0 this month, up from a reading of 8.9 in June. Analysts had expected the index to remain unchanged in July.
The dollar was up slightly against the yen, with USD/JPY up 0.01% at 101.82, and up against the Swiss franc, with USD/CHF up 0.24% at 0.9048.
The greenback was up against the pound, with GBP/USD down 0.08% at 1.6972.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.65% at 1.0814, AUD/USD down 0.23% at 0.9396 and NZD/USD down 0.21% at 0.8556.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% at 81.13.