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Dollar advances on weak European data

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(Globalpost/GlobalPost)

The dollar Thursday rose slightly against the euro following a weak report on European industrial production.

Near 2100 GMT Thursday, the euro traded at $1.3298, down from $1.3309 Wednesday.

The dollar bought 99.47 yen, down from 99.87 yen.

The euro also fell against the yen, trading at 132.33 from 132.92.

The dollar had declined against major currencies the last couple of days as the "safe-haven" appeal of the greenback faded with the diminishing prospects for a US military strike on Syria.

On Thursday, the dollar advanced against the euro after eurozone industrial output fell by 1.5 percent in July compared with June.

European Central Bank President Mario Draghi also gave a cautious outlook on the European economy, calling the recent signs of recovery "still very, very green."

Investors keenly await a report Friday on US retail sales. A strong report could bolster the case for an immediate move by the US Federal Reserve to scale back its bond-buying program.

"Unfortunately it would be wishful thinking to expect the data to be so weak or strong that it would make or break the Fed's decision," said BK Asset Management managing director Kathy Lien.

"In all likelihood, retail sales continued to grow in the month of August, albeit a sluggish pace that will leave the central bank with a very tough decision next week."

The British pound slipped to $1.5803 from $1.5814.

The dollar-Swiss franc traded at 0.9306 compared with 0.9302.

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http://www.globalpost.com/dispatch/news/afp/130912/dollar-advances-weak-european-data