Investing.com

Investing.com - The dollar turned broadly higher against the other major currencies on Friday, as it began to recover from the Federal Reserve latest policy meeting, although gains were expected to remain limited.



The dollar was higher against the euro, with EUR/USD down 0.21% to 1.3579.



The dollar came under pressure after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.



The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.



The greenback shrugged off data on Thursday showing that U.S. jobless claims fell more than expected last week, as well as a separate report showing that manufacturing activity in the Philadelphia area expanded at the fastest rate in eight months in June.



In the euro zone, official data earlier showed that German producer price inflation fell 0.2% last month, compared to expectations for a 0.2% rise, after a 0.1% downtick in April.



The pound edged lower against the dollar, still hovering near five-year highs with GBP/USD slipping 0.12% to 1.7020.



Official data showed that U.K. public sector net borrowing rose to £11.48 billion in May, from a upwardly revised £9.00 billion the previous month. Analysts had expected public sector net borrowing to rise to £12.00 billion last month.



The dollar was higher against the yen and the Swiss franc, with USD/JPY adding 0.17% to 102.11 and with USD/CHF rising 0.30% to 0.8966.



The greenback was mixed against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.14% to 0.9385, NZD/USD sliding 0.38% to 0.8684 and USD/CAD retreating 0.48% to 1.0767.



In Canada, official data showed that retail sales rose 1.1% in April, exceeding expectations for a 0.4% gain, after an increase of 0.1% in March, whose figure was revised up from a previously estimated 0.1% fall.



Core retail sales, which exclude automobiles, increased by 0.7% in April, more than the expected 0.4% rise. March''s figure was revised up to a 0.2% gain from a previously estimated uptick of 0.1%.



A separate report showed that consumer price inflation in Canada rose 0.5% last month, compared to expectations for a 0.2% gain, after a 0.3% increase in April.



Core consumer price inflation, which excludes the eight most volatile items, rose 0.5% in May, beating expectations for a 0.2% uptick, after a 0.2% rise in April.



The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 80.51.





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