Investing.com - The dollar rose against the euro on Friday despite disappointing data out of the U.S., as a Bank of Japan decision to stick with loose monetary policy sparked demand for the greenback as did reassurances out of Washington that a U.S. response to Iraqi won''t involve sending troops.
In U.S. trading, EUR/USD was down 0.20% at 1.3525, up from a session low of 1.3521 and off a high of 1.3579.
The pair was likely to find support at 1.3512, Thursday''s low, and resistance at 1.3677, last Friday''s high.
At its monthly policy-setting meeting, the Bank of Japan said it will continue to expand the monetary base at a pace of ¥60 trillion to ¥70 trillion per year, which weakened the yen and boosted demand for the dollar.
BoJ Governor Haruhiko Kuroda had said last week that the central bank''s easing measures are having the intended effects and are helping the economy.
Meanwhile, markets continued to track a rebellion in Iraq led by a Sunni Islamist group.
Markets breathed a sigh of relief after U.S. President Barack Obama said he won''t sent troops to Iraq and added oil continues to flow normally out of the country, which gave the greenback room to shrug off weak data.
In a preliminary report, the Thomson Reuters/University of Michigan consumer sentiment index fell to 81.2 this month from 81.9 in May, whose figure was revised up from a previously estimated reading of 81.8. Analysts had expected the index to rise to 83.0 in June.
Also on Friday, official data showed that U.S. producer price inflation fell 0.2% in May, confounding expectations for a 0.1% rise, after a 0.6% increase the previous month.
Core producer price inflation, which excludes food, energy and trade, slipped 0.1% last month, compared to expectations for an increase of 0.1%, after a 0.5% rise in April.
Meanwhile in Europe, the euro found some support on Thursday after data showed that industrial production in the euro zone increased by 0.8% in April, above forecasts for a 0.4% gain. Industrial production in March was revised down to a decline of 0.4% from a previously reported drop of 0.3%.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.37% at 0.7976, and up against the yen, with EUR/JPY up 0.12% at 137.99.
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