CANBERA (Alliance News) - The US dollar firmed against most major currencies in European deals on Friday on expectations of tapering of bond purchase program by Federal Reserve in meeting next week. With recent upbeat US data and the federal budget approval, the traders are mulling the possibility of withdrawal of Fed stimulus measures sooner. The Fed had already indicated that it would scale back monthly bond purchases on signs of US economic recovery. Traders await producer price inflation for November due at 8:30 am ET. The PPI is forecast to show zero reading on month, whereas core PPI is seen rising 0.1%. The greenback advanced to a 4-day high of 1.3714 against the euro, adding 0.4% from an early low of 1.3769. Further gains could lead the greenback to seek resistance around the 1.36 zone. Employment in the euro area stayed unchanged for the second successive quarter in the three months to September, data released by statistical office Eurostat revealed today. Year-on-year, employment decreased by 0.8% in the three months to September, after falling 1.1% in the June quarter. Bouncing off from a prior low of 0.8882 against the franc, the greenback approached a 4-day peak of 0.8918. If the greenback extends gain, it is likely to find resistance at the 0.90 region. Swiss producer and import price index declined in November, data published by the Federal Statistical Office showed today. The price index for the whole range of domestic and imported products fell 0.4% year-on-year in November. The greenback firmed to a fresh 2-week high of 1.6278 against the pound from a low of 1.6360 hit at 10:40 pm ET. On the upside, 1.615 is seen as the next resistance for the greenback. UK construction output recovered in October, boosting hopes of strong recovery in the fourth quarter, the Office for National Statistics said today. Construction output gained 2.2% month-on-month, after declining 0.5% in September. The greenback strengthened to 0.8910 against the aussie, a level unseen since August 30. The next possible resistance for the greenback lies at the 0.88 mark. The greenback retested the 0.8204 level against the NZ dollar, heading towards its early Asian session's 1-week peak of 0.8188. The greenback may challenge resistance at the 0.81 area. The US currency gained to a 4-day high of 1.0670 against the Canadian dollar, from an Asian session's low of 1.0625. The greenback is likely to aim upside target at the 1.078 zone.

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