Summary The dollar firmed for a second straight day Friday amid murky US rate outlook.
NEW YORK (AFP) - The dollar firmed for a second straight day Friday as the outlook for a Federal Reserve interest rate hike this year remained murky.
"The dollar was in better spirits Friday as better news on the US economy the previous day suggested there was still a chance the Federal Reserve could boost interest rates in the months ahead," said Joe Manimbo of Western Union Business Solutions.
The euro slipped to $1.1353 around 2100 GMT from $1.1376 at the same time Thursday.
Manimbo said that essentially no one expects the Fed to lift rates at its October 27-28 policy meeting. And market odds have receded for a hike at the December meeting of the Federal Open Market Committee.
"The dollar has time on its side with lots of data for the Fed to peruse before it renders its final decision of the year in mid-December," he said.
Meanwhile, the euro continued to suffer from comments from a European Central Bank policymaker ahead of the ECB policy meeting next Thursday.
ECB board member Ewald Nowotny said Thursday that eurozone inflation was "clearly" undershooting the central bank s target, stirring speculation that the ECB might announce an increase in its quantitative-easing stimulus program for the 19-nation eurozone.
Official data Friday confirmed that eurozone inflation fell to a negative 0.1 percent in September.
"The ECB is not expected to increase stimulus next week because recent comments from European policymakers show no urgency to add QE, but many major banks believe they will have no choice but to increase stimulus in the coming months," said Kathy Lien of BK Asset Management.
