The US dollar fell yesterday, the extent of the fall probably exacerbated by thin trading. Reuters reports:
The dollar fell sharply on Friday, pushing the euro above $1.31 for the first time since April 2005, on concerns about central banks diversifying their reserves and the greenback's narrowing yield advantage over other currencies.
The dollar's fourth consecutive session of weakness was the culmination of a host of negative developments over the last several weeks, including weaker-than-expected U.S. economic data and comments from central banks in Asia and the Middle East underscoring the risk of keeping large reserves of dollars.
The economic news from Europe would also have played a part.
Bloomberg reports that in Germany, inflation was higher than expected in November.
German inflation accelerated more than expected in November as prices for seasonal food and gas rose in Europe's largest economy, underlining the European Central Bank's case for raising interest rates next month.
Prices increased 1.5 percent from a year ago using a harmonized European Union method, the Federal Statistics office in Wiesbaden said in a faxed statement today. From October, prices dropped 0.1 percent.
Bloomberg also reports that French business confidence stayed high in November.
French business confidence held near a five-year high in November on lower oil prices and declining unemployment as executives anticipate a fourth-quarter pickup in economic growth.
Insee, the Paris-based national statistics office, said today its index of sentiment remained at 107 this month after October's reading was revised down to 107. The gauge reached 109 in April, the highest since March 2001.
And British economic growth was confirmed at 0.7 percent in the third quarter.
US stocks fell yesterday while Treasuries rose, but things may not be so bad for the economy if this Reuters report on "Black Friday" shopping is anything to go by.