Dollar Rises Against Major Counterparts

(RTTNews) - After staying quite subdued during the Asian and European sessions, and early on in the New York session, the U.S. dollar climbed higher on Friday amid bets the Federal Reserve will be less aggressive with regard to interest rate cuts, and on speculation former President Donald Trump coming to power for a second term. Higher Treasury yields contributed as well to the dollar's rise.

In economic news today, data from the Commerce Department said durable goods orders slid by 0.8% in September, matching a revised decrease in August. Economists had expected durable goods orders to fall by 0.5 percent compared to the unchanged reading originally reported for the previous month.

According to revised data released by the University of Michigan, consumer sentiment in the U.S. unexpectedly improved in the month of October. The report said the consumer sentiment index for October was upwardly revised to 70.5 from a preliminary reading of 68.9. Economists had expected the index to be upwardly revised slightly to 69.0.

The Atlanta Fed cut the U.S. growth projection for the third quarter on Friday, citing the recent official data as well as the housing market figures. The bank lowered the GDPNow model estimate for real GDP growth in the third quarter to 3.3% from 3.4% projected on October 18.

The Federal Reserve Bank of New York staff nowcast of U.S. GDP growth for the third and fourth quarters were lowered on Friday, citing negative surprises from recent economic data. The New York Fed Staff Nowcast for the third quarter was reduced to 2.9% from 3% estimated on October 18. The figure was lowered for a second time this month.

The dollar index climbed to 104.34, gaining nearly 0.3%, after moving along the flat line till a little before noon.

Against the Euro, the dollar strengthened to 1.0797 from 1.0828. Against Pound Sterling, the dollar firmed to 1.2959 from 1.2977.

The dollar climbed against the Japanese currency, fetching 152.29 yen a unit, up from 151.84 yen a unit Thursday evening. Against the Aussie, the dollar firmed to 0.6603, rising about 0.6% from 0.6640.

Against Swiss franc, the dollar gained marginally at CHF 0.8666, and against the Loonie, it advanced to C$ 1.3896 from C$ 1.3856, despite a sharp rise in oil prices.