NEW YORK – The dollar traded mixed Friday as markets awaited approval of a bailout package for Greece, while the U.S. economy grew for the third consecutive quarter in the first three months of the year.
Developments in Europe helped boost the euro, while the report of 3.2 percent growth in the U.S. economy weighed on the dollar versus most emerging-market currencies.
In late New York trading, the euro rose to $1.3308 from $1.3245 late Thursday. It fell to a one-year low of $1.3116 Wednesday as debt fears spread throughout Europe, but hopes for quick approval of an expanded, three-year bailout package have helped support the euro since then.
The British pound fell to $1.5277 from $1.5333, while the dollar slipped to 93.93 Japanese yen from 94.02 yen.
The dollar rose to 1.0170 Canadian dollars from 1.0061 Canadian dollars, but slipped to 1.0765 Swiss francs from 1.0832 francs. The dollar also fell versus the Australian and New Zealand dollars, the Nordic currencies and most Asian currencies.
The Commerce Department said on Friday that the U.S. economy grew 3.2 percent in the first three months of the year, down from 5.6 percent in the fourth quarter of 2009. But it was the third consecutive quarter of growth as the U.S. economy recovers from a deep recession.
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The solid reading on economic growth mostly weighed on the dollar, which is seen as a haven during economic turmoil as it did during the financial crisis in the aftermath of Lehman Brothers' collapse. Currencies of fast-growing countries in Asia and high-yielding currencies of commodity exporters such as Australia and Brazil gained.
Announcements of budget cuts and tax increases from Greek Prime Minister George Papandreou boosted the euro. Greece, the International Monetary Fund and European leaders are hammering out a financial rescue that could send Greece a reported 120 billion euros over three years and 45 billion euros in loans this year.
Greece's massive deficit and possible default have touched off fears of debt woes in other European countries, helping drag the euro lower from above $1.51 in November.
Although a bailout package could help calm market fears, there's still uncertainty about debt in Europe, said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon. He maintained his euro forecast for $1.28 by the end of the year.
