U.S. Dollar Higher On Growth Concerns

(RTTNews) - The U.S. dollar moved up against its major counterparts in the European session on Friday, as European stocks fell on growing worries about a recession in the wake of a faster policy tightening by major central banks to curb soaring inflation.

Eurozone inflation touched a new record high in June, putting pressure on the European Central Bank to hike interest rates aggressively in the coming months.

Tepid outlook from Micron Technology also weighed on shares. The company provided a disappointing revenue guidance for the current quarter and said the demand had "weakened considerably in a very short period of time."

The U.S. Federal Reserve raised rates by 75 basis points last month and the markets are expecting another hike of the same size at the end of this month.

Data showing a drop in U.S. manufacturing activity to a two-year low in June added to worries.

The Institute for Supply Management's manufacturing PMI slid to 53.0 in June from 56.1 in May. Economists had expected the index to dip to 54.9.

The greenback touched more than 2-week highs of 1.0365 against the euro and 1.1976 against the pound, following its early lows of 1.0485 and 1.2178, respectively. The greenback may find upside target around 1.02 against the euro and 1.18 against the pound.

The greenback moved up to an 8-day high of 0.9633 against the franc, from a low of 0.9542 hit at 5 pm ET. Next immediate resistance for the currency is seen around the 0.98 level.

Extending early rally, the greenback firmed to more than 2-year highs of 0.6764 against the aussie and 0.6147 against the kiwi. The greenback is likely to face resistance around 0.66 against the aussie and 0.60 against the kiwi.

Against the loonie, the greenback was up at a 1-week high of 1.2966. The currency may challenge resistance around the 1.32 level.

In contrast, the greenback held steady against the yen, after hitting a 4-day low of 134.74 at 2 am ET. At yesterday's close, the pair was worth 135.66.