Dollar supported vs major rivals on rate hike expectations; Euro slips after data

The greenback was higher against the yen and the euro on Friday, as demand for the former remained underpinned by growing hopes for a December rate increase by the Federal Reserve.

USD/JPY was slightly lower at 122.82, down 0.04%. On Wednesday the pair hit a three-month high of 123.69.

The greenback remained supported after the minutes of the Federal Reserve's October meeting showed on Wednesday that most board members supported a rates increase next month.

Moreover, positive U.S. economic reports released a day earlier contributed to expectations for a December hike.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 14 fell by 5,000 to 271,000 from the previous week’s total of 276,000.

The Federal Reserve Bank of Philadelphia said Thursday that its manufacturing gauge improved to 1.9 this month from October's reading of -4.5.

GBP/USD dropped 0.09% to trade at 1.5278, while EUR/GBP slipped 0.39% to settle at 0.6993.

The euro gave up 0.43% to trade at $1.0685.

Earlier Friday, data showed that Germany’s producer price index fell more-than-expected last month.

Destatis reported earlier that German Producer Price Inflation fell to a seasonally adjusted annual rate of -0.4%, from -0.4% in the preceding month. Economists had expected German PPI to fall -0.2% last month.

Sentiment on the shared currency remained vulnerable after the minutes of the European Central Bank’s October meeting showed yesterday that there are now elevated risks that the bank would miss its inflation target.

Most members of the Governing Council agreed that inflation threats have risen and said the timing of inflation getting back to target is likely to be pushed back again.

The regulator reiterated that it is ready to act and would re-assess its policies at its upcoming meeting on December 3.