(RTTNews) - The dollar rocketed to a fresh 9-month high versus the euro on Friday as yesterday's vague plans from the European Union to deal with the Greek crisis did little to alleviate debt concerns.
Disappointing economic growth data from the euro area cemented expectations that the European Central Bank will be forced to keep interest rates at record low levels through 2010.
The Greek economy contracted for the fifth straight quarter, and the much larger German economy stagnated in the final quarter of 2009.
China made a surprise move to raise the reserve requirements of banks for the second time in a month, spooking the markets and fueling risk aversion.
The dollar rose to 1.3531 versus the euro, up more than a penny from last night. With the advance, the dollar moved further away from November's 15-month low near 1.51.
The buck also firmed up versus the sterling, advancing to 1.5560. A week ago, the buck hit an 8-month high of 1.5533, but has since leveled off.
Meanwhile, the buck jumped back above 90 yen after spending most of the week below that mark.
The dollar stopped its bleeding against the resurgent loonie, bouncing back above $1.0500 after hitting a 3-week low of C$1.0478.
Traders are looking ahead to a busy day on the economic calendar,
Retail sales figures for the US are due at 8:30 a.m. ET. Economists expect that retail sales for January, excluding automobiles, gained rose 0.5%, while retail sales including auto sales, increased 0.3% during the month.
Also on tap will be the preliminary report of the Reuters/University of Michigan's consumer sentiment survey for February, slated for release at 9.55 a.m. ET. Economists expect that the consumer sentiment index rose slightly to 74.8 for the month from 74.4 reported in January.
