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The US dollar showed signs of recovery on Friday as latest figures from the United States Commerce Department showed significant growth in the economy.
The dollar grew against the euro, the British pound and the Canadian dollar amid news that the US economy grew by 3.4 percent in the second quarter of the year.
The euro bought $1.3649 late on Friday, although it was worth as little as $1.3628 earlier in the day, which marks a significant recovery for the ailing dollar.
The British pound too weakend against the United States currency, down to $2.0270 late on Friday.
Elsewhere, the dollar was worth 1.0610 Canadian dollars as its northern neighbour fell back from 30-year highs. There had been speculation that the two currencies might even reach parity in coming weeks, though this now seems unlikely.
The US dollar was down against the yen at 118.40, compared to 119.46 a day earlier.
The better-than-expected 3.4 percent rise in the economy between April and June is the most likely cause for this positive end to the week by the dollar.
The Commerce Department also reported that exports grew 6.4 percent as imports dropped down 2.6 percent.
Though Friday’s developments are welcome, the likelihood of further interest rises in Europe and Britain, and the ongoing housing crisis in the US, could hamper the dollar’s recovery in the coming months.
15:50
Posted on Jul-29-2007
