The dollar weakened against major currencies on Friday after disappointing data and as profit takers moved in ahead of the Federal Reserve's policy meeting.

The greenback was pressured by the latest data showing a sharp drop in consumer confidence.

The University of Michigan´s consumer confidence index for the month of March fell to 71.8 points, its lowest level since December 2011 from 77.6 in the previous month. Analysts had pencilled in a reading of 78.0.

A separate report on US industrial production came in stronger than expected. It grew by 0.7% month-on-month in February, well ahead of the 0.3% increase predicted.

The dollar index, which measures the US currency against a basket of six others, fell to 82.235 from 82.605 on Thursday.

Meanwhile the euro firmed on hopes that Eurozone leaders will find ways to boost struggling economies in the region. The single currency climbed to a session high of $1.3107 before later trading at $1.3054 compared to $1.2910 on Thursday.

Over the weekend, lenders agreed to provide a €10bn bailout for Cyprus in the latest bid to resolve the ongoing crisis. However there has been strong opposition to the nation's one time tax on bank deposits as part of the bailout deal.

Against the yen, the dollar slipped 0.7% to ¥95.38 as the Japanese currency befitted from short-cover following recent losses.


CJ

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