Early trade in New York: dollar rises after upbeat US data

The US dollar rose against a basket of currencies on Friday after data showed US factory and services activity quickened in November in a sign of the continued resilience of the US economy in the face of the US-China trade war and other headwinds.

IHS Markit said its "flash" purchasing managers index (PMI) for manufacturing rose to 52.2 in November from a final reading of 51.3 in October, while its preliminary services PMI increased to 51.6 this month from 50.6 last month.

The dollar index, which compares the dollar against six major currencies, was up 0.15% at 98.139.

Helping the dollar's strength was a survey which showed euro zone business growth almost ground to a halt this month as activity in the bloc's dominant services industry increased at a much weaker pace than expected and among manufacturers it contracted again.

The common currency fell 0.16% against the greenback. Meanwhile, volatility in the currency market has plunged in recent days with the Deutsche Bank FX Volatility Index slipping to 5.86, its lowest since mid-July.

The pound dived on Friday and was on pace for a weekly loss after surveys showed British business suffered its deepest downturn since mid-2016, with caution rising before a Dec. 12 general election. The pound was 0.56% lower at $1.2841.