2017.01.1923:10:00UTC+00Dollar Rises After Strong Data as Euro Climbs

The dollar climbed against a basket of currencies despite weakening against the euro, as latest data which showed solid labor and housing supported the case for robust U.S. economic growth. The euro slid early on after European Central Bank chief Mario Draghi indicated slumping inflation and called for more monetary policy assistance in Europe.

The ECB said it will extend its negative interest rate policy and continue the record pace of asset buying to stimulate tepid growth. The euro weakened below $1.06 in Draghi's speech, as he described the eurozone's recovery as "dampened by the sluggish pace of structural reform". The euro rebounded as investors digested Draghi's remarks and pointed out that no changes to the policy was stated. The common currency was last up 0.25 percent at $1.0658.

The dollar was higher on the day, as it held gains against the Japanese yen and Canadian dollar and was also boosted by upbeat reports on U.S. unemployment claims and housing. The greenback climbed to almost a one-week peak against the yen as investors placed bets on the strengthening dollar. The dollar moved to 115.29 yen, its highest since Jan 13. It was last up 0.15 percent to 114.82 yen. The dollar index was last up 0.25 percent at 101.170.

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