The dollar extended its rally versus the euro on Friday amid renewed expectations that stimulus from the European Central Bank is being planned for June.
The ECB refrained from easing at this week’s policy meeting, but deflationary risks may compel them to act soon.
“The governing council is comfortable with acting next time,” European Central Bank President Mario Draghi said, referring to the bank’s scheduled meeting next month.
The dollar jumped to $1.3750 versus the euro, having tested a multi-month low near $1.40 before Draghi’s press conference yesterday.
Gradual gains took the dollar to $1.6846 versus the sterling, up about a penny from its lowest this week.
There was little movement near Y101.75 versus the yen, with the pair holding in a relatively tight range for the past few months.
Traders today weighed a some encouraging U.S. economic data.
U.S. wholesale inventories rose more than expected in March, according to figures released Friday by the Commerce Department.
Inventories rose 1.1 percent in March, while economists were looking for a 0.4 percent increase.
Also, inventories were up by a revised 0.7 percent in February, a bit higher than the prior 0.5 percent reading.
Germany’s exports declined for the second straight month in March, data from Destatis showed. Defying expectations, exports fell 1.8 percent month-on-month in March, sharper than the 1.3 percent fall seen in February. Shipments were expected to rise by 1.3 percent.
At the same time, imports declined 0.9 percent, reversing a 0.4 percent rise in February. Economists had forecast 0.6 percent increase for March.
U.K. industrial production dropped slightly in March largely due to a fall in oil and gas extraction, data from the Office for National Statistics revealed. Industrial production fell 0.1 percent from February, when output rose 0.8 percent. Production was forecast to decrease 0.2 percent.