LONDON (SHARECAST) - The dollar firmed against major currencies on Friday as stocks on Wall Streetretreated sharply following Thursday’s rally.
Disappointing US consumer confidence data unnerved traders although manufacturing figures came in better than expected. Personal income came in flat, again as expected, although savings rose to an annual rate of $355.6bn. The mixed economic picture, along with a sell-off among financial stocks, was enough to boost the dollar’s safe haven qualities.
As Thursday’s euphoria over the US GDP figures wore off, attention turned to analysts predictions of as much as a 15% correction off Wall Street’s leading index, following the summer’s tremendous rally.
The dollar index, which measures the US currency against a basket of six others, rose 0.6% to 76.400.
The euro fell to $1.4729 from $1.4828 the previous session. The dollar fell over 1% against the Japanese yen to 89.99 yen after the Bank of Japan said it would stop buying Japanese corporate bonds.
