Dollar Mixed Versus Majors As US Trade Deficit Narrows

(RTTNews) - The dollar was mixed against a basket of major currencies on Friday, edging lower against the euro and yen while gaining further ground on the sterling. Oil prices reached a record high for a fifth straight session and traders considered data showing that the US trade deficit narrowed in March.

A Department of Commerce report showed that the trade deficit narrowed to $58.2 billion in March from a revised $61.7 billion in February. Economists had expected the deficit to narrow to $61.3 billion from the $62.3 billion originally reported for the previous month.

The narrower than expected deficit came as a decrease in the value of imports outpaced a decrease in the value of exports. The report showed that the value of imports fell 2.9 percent to $206.7 billion, while the value of exports fell 1.7 percent to $148.5 billion.

The dollar backtracked a bit versus the euro on Friday, slipping to 1.5450 and pulling further away from Wednesday's multi-week high of 1.5283.

Destatis reported Friday morning that German wholesale prices rose 0.6% in April on a monthly basis, up from the 0.5% increase expected by economists but lower than March's growth rate of 1.6%.

The greenback extended its steep losses from the previous session versus the resurgent yen. With global equities pulling back amid high commodities prices and uncertainty about the health of financials, traders flocked to the safer, lower-yielding Japanese currency. The buck slipping to a 2-week low of 102.60 before levelling off by mid-day.

On the flip side, the dollar strengthened further versus the struggling sterling on Friday. The dollar hit a fresh multi-month high of 1.9458 in early dealing, but was unable to build upon its gains for the rest of the day.

Against the kiwi, the dollar hit a 3-month high of .7655. The dollar extended its run of choppy trading versus the loonie, slipping to 1.0060. The Canadian dollar got a boost as the price of oil jumped above $126 for the first time ever.

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