(RTTNews) - The U.S. dollar declined against other major currencies on Friday despite falling Asian and European equities.
Stocks in Asian and Europe fell as a spike in borrowing cots for Spain and France sparked worries that the debt crisis would have wider consequences. Official data showing falling housing prices in China for the first time this year and the lack of progress in U.S. deficit-reduction talks also undermined investor sentiment.
The dollar is trading at a 2-day low of 1.3550 against the euro with 1.356 seen as the next downside target level. At yesterday's close, the euro-dollar pair was quoted at 1.3461.
Data from the Federal Statistical Office showed today that Germany's producer prices were up 5.3 percent year-on-year, in line with expectations, but down from the 5.5 percent increase in September.
On a monthly basis, producer prices moved up 0.2 percent, following a 0.3 percent rise in the prior month. Economists were expecting producer prices to rise 0.1 percent.
The dollar that closed yesterday's trading at 77.0 against the yen is currently trading at an 18-day low of 76.66. If the dollar-yen pair weakens further, it will test support around the 76.5 level.
Against the Swiss franc, the dollar is trading at a 3-day low of 0.9120, compared to yesterday's close of 0.9222. The next downside target level for the dollar-franc pair is seen at 0.910.
The dollar is trading at a 3-day low of 1.5852 against the pound and if the dollar falls further, 1.590 is seen as the next target level. The pound-dollar pair ended yesterday's trading at 1.5758.
Traders are now likely to focus on Canada's CPI and leading indicators for October, which are due at 7 am and 8:30 am ET, respectively.
The U.S. leading indicators for October is expected at 10 am ET.
