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* U.S. consumer sentiment beats expectations
* Dollar falls against yen on risk aversion
By Sam Forgione
NEW YORK, June 27 The U.S. dollar edged lower on
Friday against a basket of major currencies and looked set for a
second week of losses after positive data on consumer sentiment
failed to boost expectations for a rise in interest rates any
The Thomson Reuters/University of Michigan's final June
reading on the overall index on consumer sentiment came in at
82.5, up from 81.9 the month before and above the median
forecast of 82.0 among economists polled by Reuters.
Analysts said the upbeat consumer sentiment data left
traders cold since it failed to dispel worries about the U.S.
economy after data on Thursday showed slightly
weaker-than-expected data on consumer spending in May and weekly
"Confidence is higher but it's not being reflected right now
in spending," said Chris Gaffney, senior market strategist at
EverBank Wealth Management in St. Louis. "It's overall weakness
of the U.S. recovery, and therefore rates are probably going to
stay lower longer."
Traders are watching data closely for signs of when the Fed
will raise interest rates from rock-bottom levels.
The U.S. dollar index, which measures the dollar
against a basket of six major currencies, was last down 0.14
percent at 80.107. The euro was last up 0.14 percent
against the dollar at $1.3631.
The dollar was last down 0.31 percent against the yen
at 101.40 yen. The dollar was down 0.22 percent against the
Swiss franc to trade at 0.89155 franc. The pound
edged 0.09 percent lower to trade at $1.7015 after gains on
Analysts said the yen gained on safe-haven bids on the
concerns surrounding the U.S. economy, while there was little
sign that the Bank of Japan would announce more monetary
stimulus any time soon.
Recent economic data has diminished pressure on the BoJ to
further stimulate Japan's economy, resulting in a stronger yen
in relation to the dollar, said Richard Scalone, co-head of
foreign exchange at TJM Brokerage in Chicago.
Lower U.S. bond yields weighed on the dollar. Benchmark
10-year U.S. Treasury notes were last up 3/32 in
price to yield 2.51 percent.
(Reporting by Sam Forgione; Additional reporting by Patrick
Graham in London; Editing by James Dalgleish)