Alexa

Stronger US economy lifts dollar vs euro, pound

Stronger US economy lifts dollar vs euro, pound

The dollar pushed higher against the euro Friday after the U.S. government said the economy accelerated at the end of 2010.
The currency used by 17 European countries fell to $1.3667 in morning trading in New York from $1.3729 late Thursday, backing off a two-month high of $1.3759. The euro has risen over the past three weeks as investors' expectations rise that European officials will launch a stronger attack on Europe's debt problems.
The British pound fell to $1.5859 from $1.5935. Against a group of six currencies, the dollar rose 0.3 percent.
But the dollar dropped to 82.25 Japanese yen from 82.82 yen. The dollar had bounced against the Japanese currency Thursday after ratings agency Standard & Poor's cut the Asian country's credit rating, citing its extensive and growing debt.
The Commerce Department said Friday that the U.S. economy grew at a 3.2 percent annual pace from October to December, up from 2.6 percent from July through September. Economic growth got a boost from heavier spending by consumers and an increase in exports.
"The U.S. economy is back," wrote Augustine Faucher of Moody's Analytics in a research note.
The dollar also rose to 99.57 Canadian cents from 99.40 Canadian cents, but fell to 0.9438 Swiss franc from 0.9458 Swiss franc.