Dollar mostly higher despite weak US home sales data

NEW YORK: The dollar slipped against the euro but gained against other major currencies Friday as investors appeared to shrug off another disappointing report on the US housing market.

The euro traded at $1.3734 around 2300 GMT, up from $1.3721 late Thursday.The dollar rose to 102.49 yen from 102.30 yen.

The euro also advanced against the Japanese currency, to 141.00 yen from 140.36 yen.

The euro continued to firm against the greenback after Moody´s raised Spain´s investment-grade credit rating a notch, citing the country´s progress in structural reforms to put the ailing economy on a more sustainable growth track.

The latest in a series of weak indicators on the US housing market was largely chalked up to severe winter weather in large parts of the country.

According to the National Association of Realtors, sales of existing, or previously occupied, homes tumbled 5.1 percent in January.

"Today´s larger-than-expected decline in existing-home sales continues to show how much pressure the brutal winter has had on the US economy," said Kathy Lien of BK Asset Management.

"In order for the greenback to enjoy a strong recovery, US data needs to start improving and unfortunately we do not expect that to happen for another few weeks when we finally move past January and February releases.

"Lien said she expected "no surprises" from this weekend´s meeting of finance chiefs of the Group of 20 most powerful economies.

"US monetary policy has made life difficult for many countries but official criticism is not expected to make its way onto the communique," she said.

The dollar rose to 0.8916 Swiss franc from 0.8892 franc late Thursday.The pound dipped to $1.6655 from $1.6657.