LONDON (SHARECAST) - The dollar firmed against the euro on Friday as investors sought the US currency’s safe haven qualities.
The US Consumer Price Index, a key inflation reading, rose a weaker than expected 0.1% for December compared to an expected increase of 0.2% and 0.4% the prior month. The core CPI for December rose 0.1%. Traders digested the tame inflation data and a rise in manufacturing activity in New York state.
The dollar index, which measures the US currency against a basket of six others, rose to 77.247 from 76.762 the previous session. The dollar rose 0.8% against the euro at $1.4389.
The greenback was also up 0.4% against the pound at $1.6265. The dollar fell 0.5% against the yen at 90.70 yen.
Rumours that German Chancellor Angela Merkel will shortly resign pressured demand for the euro as did persistent concern about Greece's financial woes.
