uk.biz.yahoo.com
LONDON (ShareCast) - The dollar strengthened against the euro on Friday amid rising expectations that the European Central Bank will, like other central banks, move towards quantitative easing.
The euro also came under further pressure following
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comments by German finance minister Peer Steinbrueck about the stability of the euro if 'fiscal responsibility is not taken more seriously in Europe.'
A sharp slump in euro zone industrial orders in January also prompted a flight out of the euro and into safe haven currencies.
A lacklustre performance on Wall St on Friday bolstered demand for the dollar as investors sought its safe haven status.
The dollar index, which measures the currency against six others, rose to 85.138 late US trading from 84.105 the previous session.
The pound fell against most major currencies following and a 1-week low against the dollar after an unexpected downward revision to UK GDP.
Official data showed UK GDP shrank by 1.6% in the fourth quarter of 2008, the sharpest quarter-on-quarter decline since 1980, compared with earlier estimates of a 1.5% decline.
Meanwhile the Japanese yen gained against the dollar on Friday as its safe haven status came into demand
