Investing.com - The dollar extended gains against the other major currencies on Friday, as the release of upbeat U.S. retail sales data fuelled optimism over the strength of the economy, boosting demand for the greenback.
USD/JPY climbed 0.40% to 112.87, off Thursday’s 15-month trough of 110.98.
In a preliminary report, the University of Michigan said its consumer sentiment index slipped to 90.7 in February from 92.0 the previous month. Analysts had expected the index to remain unchanged this month.
Separately, the U.S. Census Bureau said that retail sales rose 0.2% in January, exceeding expectations for a 0.1% uptick. Retail sales rose 0.2% increase in December, whose figure was revised from a previously estimated 0.1% fall.
Core retail sales, which exclude automobiles, increased by 0.1% last month, in line with expectations and after an uptick of 0.1% in December.
EUR/USD dropped 0.74% to trade at 1.1239.
Preliminary data showed that euro zone gross domestic product grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, the bloc’s GDP rose 1.5% in the last quarter, as expected.
The report came shortly after data showed that German GDP grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, German GDP rose 2.1% in the last quarter, below expectations for a 2.3% growth rate.
A separate report showed that the euro zone’s industrial production declined by 1.0% in December, compared to expectations for a 0.3% gain.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4473 and was higher against the Swiss franc, with USD/CHF gaining 0.47% to 0.9769.
Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.44% at 0.7076 and with NZD/USD tumbling 1.44% to 0.6619.
The Australian Bureau of Statistics reported on Friday that home loans increased by 2.6% in December, disappointing expectations for a 3.0% gain. Home loans rose 1.9% in November, whose figure was revised from a previously estimated 1.8% increase.
USD/CAD edged down 0.14% to trade at 1.3915, as a rebound in oil prices lent support to the commodity-related Canadian currency.
Oil prices rose after the United Arab Emirates energy minister said late Thursday that the OPEC was willing to talk with other exporters about cutting output. Crude futures for April delivery were still below $29 a barel in U.S. morning hours.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.48% at 96.09, off Thursday’s four-month low of 95.28.