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13 May 2005 14:34  The dollar hit a six-month high against the euro


The dollar hit a six-month high against the euro and set three-month peaks against the Swiss franc and sterling on Friday after recent robust data raised optimism about the U.S. economy. Upbeat retail sales data on Thursday followed a surprisingly strong jobs report last week, reassuring the market that U.S. interest rates would continue to rise at a steady pace. In addition, news this week of an unexpected narrowing in the U.S. trade deficit in March reduced worries about structural imbalances in the world's largest economy. "The dollar's cyclical story is back in full boom. I can see the euro/dollar testing $1.25 in the next week or two," said Adam Myers, currency strategist at Societe Generale. Euro zone and EU finance ministers and central bankers meet in Luxembourg on Friday, and several European Central Bank officials are also speaking on Friday.
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