Dollar Gains On Other Majors, Friday, June 08, 2007 11:03:18 AM

The dollar saw strength against the other major currencies on Friday morning in New York. Thet greenback touched two-month highs against the euro and sterling in morning dealings. Trading took place as the Department of Commerce released its report on U.S. international trade in goods and services in the month of April, showing that the trade deficit narrowed by much more than economists had been expecting. The report showed that the trade deficit narrowed to $58.5 billion in April from a revised $62.4 billion in March. Economists had expected the deficit to narrow to $63.5 billion from the $63.9 billion originally reported for the previous month.

The dollar advanced on the euro on Friday morning and touched a two-month high. After level trading into the early morning, the greenback soared at around 3:30 a.m. ET. The dollar reached as high as 1.3322 at 6:15 a.m. ET. It settled back slightly at 1.3356 at 10:30 a.m. ET. Early trading took place amid the release of data that showed Germany`s trade surplus in April declined to 15 billion euros. Also, France trade deficit widened to EUR2.83 billion in April, official data indicated Friday.

The dollar surged to a two-month high against the British pound on Friday morning in New York. The pair was range-bound into the early morning until the dollar began to rally at around 3 a.m. ET. It got as high as 1.9623 at 6:15 a.m. ET before leveling off. It slipped a little at around 8 a.m. before settling at 1.9688 at 10:45 a.m. Trading took place amid the release of data that showed UK industrial production expanded 0.3% from the prior month in April, the Office of the National Statistics - ONS said Friday. This compared to revised 0.2% increase in the prior month. Initially, the March growth was reported as 0.3%. Economists were looking for 0.2% growth in April.

The dollar climbed on the Japanese yen on Friday morning in New York. The dollar slipped in early morning hours and got as low as 120.76 at around 4 a.m. ET. From there, however, the dollar climbed for about two hours. It edged up to as high as 121.83 at 9:30 a.m. before stabilizing. Trading took place as Japan`s Nikkei index dropped by 1.5%.

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