Dollar Strengthens

Investors squared their positions ahead of the weekend

MARKETSCOPE : The dollar strengthened on Friday, as investors squared their positions ahead of the weekend.

The dollar index, which had skidded to the 89.40 level in early trading, rallied to gain 0.57 to the 90.35 level. Also, the sterling fell to $1.7652 after news that UK third quarter Gross Domestic Product growth slowed to 0.4% from 0.5% in the second quarter. Investors wondered how this would impact the BOE's fight against inflation and ability to raise lending rates.

The euro was down to the $1.1940 level, even though European Central Bank Economist Issing said that the central banks have to be "extremely vigilant" against inflation because of high energy costs. The dollar was up at 115.92 yen.

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