The dollar
extended its losses on Friday as major central banks signalled that the
era of cheap money was coming to an end in a boon to sterling, the euro
and the Canadian dollar, while Asian shares were hit by dismal
performances of European and U.S. markets.
European markets were set to open a little lower, with financial spreadbetter LCG expecting Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI to all start the day down 0.1 percent. All three lost between 0.5 percent and 1.9 percent on Thursday.
But global stock market indexes are set for more gains by the end of this year, driven by an economic revival in Europe and bright prospects for much of Asia, a Reuters poll of around 300 financial professionals showed.
The dollar index .DXY fell 0.1 percent to 95.549, poised for a 1.8 percent slide this week, having fallen in all sessions but one. It is down 1.4 percent for the month, and 4.8 percent for the quarter.
The Korean won weakened against the dollar after the country reported industrial production rose by 0.2 percent in May from a month earlier, missing expectations for growth of 1.5 percent. That followed a 2.2 percent decline in April
The dollar was up 0.1 percent at 1,142.5 won KRW=KFTC.
The dollar fell 0.25 percent to 111.95 yen, after losing 0.2 percent on Thursday. It was heading for a 1.2 percent gain for the month, but is down 4.2 percent this year.
Bank of England Governor Mark Carney surprised many on Wednesday by conceding a rate hike was likely to be needed as the economy came closer to running at full capacity.
Sterling GBP=D3 was 0.1 percent higher on Friday at $1.3017, adding to Thursday's 0.6 percent gain.
Two top policymakers at the Bank of Canada also suggested they might tighten monetary policy there as early as July.
The dollar slipped 0.15 percent to C$1.2984 CAD=, extending Thursday's 0.26 percent loss.
Despite comments by sources that European Central Bank President Mario Draghi had intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening, the euro on Friday revisited the 13-month high of $1.1445 hit on Thursday.
The euro EUR=EBS remained close to that level and was at $1.1439 on Friday, retaining most of Thursday's 0.6 percent gain.
But global stock market indexes are set for more gains by the end of this year, driven by an economic revival in Europe and bright prospects for much of Asia, a Reuters poll of around 300 financial professionals showed.
The dollar index .DXY fell 0.1 percent to 95.549, poised for a 1.8 percent slide this week, having fallen in all sessions but one. It is down 1.4 percent for the month, and 4.8 percent for the quarter.
The Korean won weakened against the dollar after the country reported industrial production rose by 0.2 percent in May from a month earlier, missing expectations for growth of 1.5 percent. That followed a 2.2 percent decline in April
The dollar was up 0.1 percent at 1,142.5 won KRW=KFTC.
The dollar fell 0.25 percent to 111.95 yen, after losing 0.2 percent on Thursday. It was heading for a 1.2 percent gain for the month, but is down 4.2 percent this year.
Bank of England Governor Mark Carney surprised many on Wednesday by conceding a rate hike was likely to be needed as the economy came closer to running at full capacity.
Sterling GBP=D3 was 0.1 percent higher on Friday at $1.3017, adding to Thursday's 0.6 percent gain.
Two top policymakers at the Bank of Canada also suggested they might tighten monetary policy there as early as July.
The dollar slipped 0.15 percent to C$1.2984 CAD=, extending Thursday's 0.26 percent loss.
Despite comments by sources that European Central Bank President Mario Draghi had intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening, the euro on Friday revisited the 13-month high of $1.1445 hit on Thursday.
The euro EUR=EBS remained close to that level and was at $1.1439 on Friday, retaining most of Thursday's 0.6 percent gain.
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