The U.S. currency gained some reprieve on Friday as global equities fell and investors trimmed their positions ahead of holidays in Japan and Singapore next week, although the trend for broad dollar weakness was seen as likely to persist.
"It's a risk-driven move for now. Overnight equities didn't perform as well. That is obviously weighing on markets for now. It remains to be seen whether that is sustained," said Geoffrey Yu, currency strategist at UBS in London.
"It's possible on Friday people are taking profits. It's too early to tell whether it marks the beginning of a trend because there's been no notable catalyst for now but if things do pick up again up ahead, as in outflows from risk markets pick up, then it may mark the start of something more significant."
The euro dipped 0.2 percent from late U.S. trading on Thursday to $1.4705 EUR= by 1012 GMT.
The euro, which hit a one-year high of $1.4768 on trading platform EBS on Thursday, has risen about 2.8 percent in the past two weeks.
Data showing German August producer prices rose by 0.5 percent month-on-month, beating forecasts for a 0.2 percent rise, had little effect on the market. [ID:nBAF001792]
The dollar index, which measures the dollar's value against a basket of six major currencies, rose 0.35 percent to 76.455 .DXY, having bounced off Thursday's one-year low of 76.010.
Comments by Russian Prime Minister Vladimir Putin that there was no threat to the United States from many reserve currencies also had little immediate effect on the market. [ID:nLI168886]
"We've obviously had a fairly big move. There's not much in terms of news or catalyst to drive the market further ... It's just time for a period of consolidation after some big moves," said Derek Halpenny, European head of currency research at Bank of Tokyo Mitsubishi UFJ in London.
Source:- in.reuters.com
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