NEW YORK: The US dollar fell against the euro on Friday after fresh positive eurozone economic data and an upbeat global economic outlook from US Federal Reserve chief Ben Bernanke.
At 2100 GMT, the euro rose to 1.4328 dollars from 1.4251 dollars in New York on Thursday, after hitting a high of 1.4376.
It also moved higher against the Japanese currency, at 135.21 yen from 134.23 the previous day.
The dollar rose slightly to 94.35 yen from 94.17 yen on Thursday.
The euro "continues its stride higher (against the dollar) on excellent economic data but has come off of daily highs on better US data which translated into some dollar strength," said Kathy Lien, director of currency research at Global Forex Trading.
She said that data showing a key eurozone purchasing managers index rose to the break-even point in August after a long contraction "have almost become the most powerful argument that the region has escaped the clutches of recession."
"Such impressive data has revitalised speculation about when the ECB (European Central Bank) will start to raise rates," she said. "Many economists are starting to indicate that mid-way into next year will start the new hawkish monetary cycle."
A surprisingly strong jump in US existing home sales, to a two-year high, lifted equity markets.
In a further sign that the recession in the world's largest economy was easing, the National Association of Realtors reported that US existing home sales surged 7.2 percent in July to a seasonally-adjusted annual rate of 5.24 million units.
Traders also reacted positively to Bernanke's comment that the prospects for a global economic recovery "appear good," feeding appetite for currencies that are considered riskier such as the euro over the safe-haven dollar.
"The US dollar and Japanese yen were hammered lower on Friday as comments from Fed chairman Bernanke spurred optimism that the global economy is on its way out of recession," said Terri Belkas, currency strategist with Forex Capital Markets.
A variety of growth indicators in the United States and elsewhere due to be released the coming week "may determine how sound that argument is, and thus, the next move for the US dollar and Japanese yen," she said.
"Dollar weakness has been the story ... and continues to remain key as risk appetite continues to favour rivals," said Roman Kadinsky, also from Forex Capital Markets.
In late New York trading, the dollar declined to 1.0575 Swiss francs from 1.0627 a day earlier.
The pound slipped to 1.6501 dollars from 1.6506. - AFP/de
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