US dollar rises against euro on encouraging data

The U.S. dollar gained against euro Friday as robust housing data showed an improving U.S. economy. The pace of U.S. home construction jumped in April to its highest level since November. Privately-owned housing starts in the month surged 13.2 percent to a seasonally adjusted annual rate of 1.072 million, the highest since November, while building permits, a gauge of future construction, rose 8 percent to a nearly six-year high of 1.08 million, said the U.S. Commerce Department Friday. This housing data beat market's estimation. Analysts took it as a signs of improving economy of the United States. The European Union's Statistics Office on Thursday reported eurozone gross domestic product (GDP) rose 0.2 percent in the first quarter, lower than forecast, which fueled speculation that the European Central Bank may expand monetary stimulus in June. ECB President Mario Draghi said last week he was comfortable with adding further stimulus next month. It is widely expected that ECB will introduce a package of policy options to boost the economy, and rate cut next month is "more or less a done deal." In late New York trading, the euro lost to 1.3697 U.S. dollars from 1.3716 dollars of the previous session, and the British pound increased to 1.6821 U.S. dollars from 1.6796 dollars. The Australian dollar went up to 0.9365 U.S. dollars from 0.9358 dollars. The U.S. dollar bought 101.52 Japanese yen, lower than 101.53 yen of the previous session. The greenback moved up to 0.8920 Swiss franc from 0.8901 Swiss franc but moved down to 1.0866 Canadian dollars from 1.0877 Canadian dollars.