Dollar gains on euro after strong US data

December 29, 2014 | 08:00

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The dollar edged higher against the euro on Friday (Dec 26), rising further on the heels of a strong US economic growth report earlier this week.

A close-up several United States 100-dollar bills (AFP/Paul J) Richards

NEW YORK: The dollar edged higher against the euro on Friday (Dec 26), rising further on the heels of a strong US economic growth report earlier this week.

The greenback also advanced modestly against the Swiss franc and the British pound, while retreating a bit against the yen on a quiet day in which many currency traders were absent following Thursday's Christmas holiday.

The US currency has climbed steadily against the single currency since May on expectations that the US Federal Reserve will move more quickly to raise interest rates than other major central banks. Those expectations grew after the Commerce Department reported on Tuesday that US gross domestic product jumped 5.0 per cent in the third quarter, far better than previously estimated.

"There's a difference in outlook for monetary policy in the US and Europe with the US tightening and Europe becoming more accommodative," said Saxo Banque analyst Andrea Tueni. "The economic data are much more solid in the US than in Europe."

AFP

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