Dollar falls to 6-month low against euro

The United States dollar hit a six-month low against the euro Friday after strong economic growth overseas overshadowed more modest signs of expansion in the United States.

The euro climbed above $1.37 for the first time since March. It rose as high as $1.3783 against the dollar and traded at $1.3780 in the late afternoon, up from $1.3643 on Thursday.

A manufacturing report out of China buoyed confidence in international growth, while a similar reading in the US showed the pace of expansion there was slowing.

The dollar has weakened in recent weeks on investor expectations that the US Federal Reserve may take further action to stimulate the economy. That is likely to lower interest rates and drive the value of the dollar further.

A Federal Reserve official Friday said that the central bank is likely to make more moves to support the economy. In a speech in New York, William Dudley, president of the Federal Reserve Bank of New York, said lower interest rates would increase the value of Americans' assets, and could lead them to spend more.

In Europe, the euro got a lift as worries about the health of the banking sector dissipated.

Ireland's cost of borrowing slid in the bond market as investors took a positive view of the country's latest efforts to deal with Europe's worst deficit and an enormous bank bailout effort.

The British pound rose to $1.5835 from $1.5716 late Thursday. The dollar slipped to 83.37 yen from 83.40 yen, and fell to 0.9753 Swiss francs from 0.9816 Swiss francs.

The US currency dropped to 1.0191 Canadian dollars from 1.0279 Canadian dollars.

- AP