The U.S. dollar continued blazing its trail Friday, further extending its longest rally since at least 1985, as raging fears about the euro-zone's troubles and deep losses for Asian equities lured investors into currencies believed to be safer.
The ICE dollar index (DXY), a measure of the greenback's performance against a basket of six major global currencies, rose to 81.619 from 81.454 in North American trade.
The day's gains come on top of the buck's 14-day winning run, a period over which it has gained about 3.7%, or nearly three full points, according to FactSet Research data.
Some analysts, however, say the dollar may have further to gain as the prospect of Greece's exit from the euro-zone preys on investor confidence.
Societe Generale analysts wrote in their weekly forex note that the dollar is benefiting from risk-aversion, as well as "relatively robust economic data outturns" in the U.S.
"As a result, the U.S. dollar will be one of the best performers this coming month," they said.
Among major currency pairs, the euro dropped to $1.2662 , from $1.2702 in North America , while the British pound depreciated to $1.5751 from $1.5808 .
The dollar also recovered some of its sharp losses against the Japanese yen overnight, and was changing hands for ¥79.345 from ¥79.28. The dollar lost heavily against the yen in North America on Thursday, following weak U.S. data and in the wake of strong Japanese economic growth figures released earlier in the Asian day.
The dollar also extended gains against several Asian currencies, with one analyst noting signs that the region's central banks aren't intervening in currency markets.
"Central banks from the region seem to have toned down intervention as they see currencies across the board losing value," Royal Bank of Scotland analysts led by Sanjay Mathur , head of research and strategy for Asia-Pacific excluding Japan , wrote in a report.
"They have been seen intervening only in small amounts to slow the decline, and not to reverse it," the RBS analysts added.
Among regional currency pairs, the dollar climbed to 1,172.70 South Korean won from 1,164.85 won the previous day, to 1.2748 Singapore dollars from S$1.2715 , to 54.75 Indian rupees from 54.47 rupees and to 3.1325 Malaysian ringgit from 3.1115 ringgit .
- V. Phani Kumar ; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
05-18-12 0119ET
