By Joseph Adinolfi, MarketWatch , Hiroyuki Kachi
Canadian dollar rises to nearly 3-month high after strong
data
The U.S. dollar inched higher against its main rivals Friday,
snapping three sessions of losses, as fears of a Greek default
drove the dollar higher.
The euro (EURUSD) traded at $1.0755, compared with $1.0769
Thursday. The dollar (USDJPY) rose to Yen119.14 yen, compared with
Yen118.98 late Thursday in New York.
The Labor Department said Friday that core consumer prices rose
0.2% in March on the back of higher gas prices, matching
expectations of economists polled by MarketWatch. Core prices
increased by the same amount in February.
Read: Consumer prices move up in March for second month
(http://www.marketwatch.com/story/consumer-prices-move-up-in-march-for-second-month-2015-04-17)
Aside from Friday's gauge of consumer-price inflation, U.S.
economic data released since Monday has been weak, weighing on the
dollar and suggesting that the Fed will wait longer before raising
interest rates.
Greece's Kathimerini newspaper reported Friday that central
banks of Southeastern European countries have told subsidiaries of
Greek lenders operating in their countries to exit all exposure to
Greek sovereign debt, which the market interpreted as a sign that a
Greek default is imminent.
Read: Greek banks abroad shed Greek bonds on default fears
(http://www.marketwatch.com/story/greek-banks-abroad-shed-greek-bonds-on-default-fears-report-2015-04-17)
Sebastien Galy, director of FX strategy at Société Générale,
said that Greek default fears were driving investors into the
dollar.
"The [CPI] data itself was a little mixed," Galy said. "To be
frank, really what you're seeing here is risk reduction linked to
Greece."
The dollar's strength was part of a broader trend of investors
dumping risk assets like stocks, Galy said. Stocks traded lower
around the world, and emerging-market currencies like the Mexican
peso (MXNUSD) sold off, as investors sought the perceived safety of
the U.S. dollar and the Swiss franc (EURCHF).
Read: European stocks drop further, heading for sharp weekly
loss
(http://www.marketwatch.com/story/european-stocks-head-lower-on-track-for-weekly-loss-2015-04-17)
Elsewhere, the Canadian dollar rallied against its U.S.
counterpart after retail sales for February and the March
consumer-price index came in above economists' expectations.
The loonie (CADUSD) traded at 82.18 cents, its highest level in
nearly three months, compared with 81.97 cents Thursday.
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