The US dollar slipped against the euro on Friday, with more losses likely over the near-term given expectations that the European Central Bank will soon tighten monetary policy, while the Federal Reserve remains on hold.
The euro was around $1.4197 at midsession in New York, up 0.2 percent, well off the session low of $1.4059. A trader said stop-loss orders between $1.4040 and $1.4060 and the defence of an options barrier around $1.4060 had prompted buying as the euro approached those levels.
The US dollar hit its highest level in more than six months against the yen and was on pace to show its strongest weekly gains since December 2009 as yield differentials favour the greenback. Prior to the New York session, the dollar/yen blew past its 200-day moving average for the first time since June 2010. The dollar last traded up 1.3 percent at 84.22. The euro hit an 11-month high against the yen, leaping 1.5 percent to 119.52.
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