6 May 2005, 10:31  Dollar еdges up against euro

The dollar was stronger against the euro Friday morning in Asia, extending gains from European trading following mixed U.S. economic data showing both productivity and jobless claims rising. The 12-nation euro dipped to $1.2940 early Friday in Tokyo from $1.2947 in late European trading and $1.2952 late Thursday in New York. The dollar was trading at 104.64 yen early Friday, up 0.28 yen from Thursday afternoon in New York. The dollar edged higher despite a dip Thursday following initial reports of an explosion outside a New York building that houses the British Consulate. The British pound fell versus the dollar as British exit poll figures late Thursday indicated that Tony Blair had retained his parliamentary seat and won a historic third term as prime minister. Midmorning in Asia, the pound fell to $1.9006, from $1.9049 in New York late Thursday. On Thursday, U.S. data showed that productivity rose at an annual rate of 2.6 percent in the first three months of the year, the best showing in nine months. However, the number of Americans filing new claims for unemployment benefits rose for the second straight week. Currency traders awaited Friday's U.S. unemployment report for April. The euro remains very strong against the dollar over nagging concerns about the enormous U.S. trade and budget deficits.

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