LONDON, Oct 12: The dollar edged slightly higher against the euro here on Friday but remained under heavy pressure and failed to take full advantage of stronger-than-expected data from the United States.
The single European currency in late-day trade was at $1.4165 after $1.4195 late Thursday in New York.
US retail sales, a crucial motor of economic growth, rose 0.6 per cent in September as American consumers boosted their spending, a government report showed on Friday.
The reading defied expectations as most economists were anticipating a tepid 0.2pc rise in overall sales.In another report the government said surging energy costs pushed up wholesale prices by a sharp 1.1pc in September. But the core rate of inflation viewed as more important by economists remained tame.
Meanwhile, the euro found some early support on hawkish comments made on Thursday by German Bundesbank president Axel Weber, who hinted that the European Central Bank could resume monetary policy tightening if inflation risks materialised.
“If risks to price stability threaten to materialise, monetary policy must not lose sight of its primary mandate -- even if it can thereby no longer support the already robust economy, or even restrict it,” said Weber, who is also a member of the ECB’s Governing Council.
His remarks were backed by ECB executive board member Juergen Stark on Friday, who said the ECB saw no sign of weakening in eurozone growth despite financial market turmoil.
In late European trade on Friday, the euro changed hands at $1.4165, against $1.4195 late on Thursday, 166.39 yen (166.48), 0.6995 pounds (0.6986) and 1.6803 Swiss francs (1.6779).
The dollar stood at 117.49 yen (117.27) and 1.1861 Swiss francs (1.1819).
The pound was being traded at $2.0338 ($2.0316).
In London, the price of gold edged up to 749.50 dollars per ounce at the morning fixing from 749.00 dollars late on Thursday.
