Forex: Friday’s review

The dollar index touched a two-week high, while the bidders follow the last-ditch attempt to prevent U.S. lawmakers' fiscal cliff. "

The dollar index ICE, tracks the greenback against a basket of six other major currencies, rose to 79.680 against 79.622 in late everoamerikanskoy Thursday session.

The dollar began to show growth due to the fact that investors think about is whether the U.S. government to reach an agreement on the prevention of automatic tax increases and spending cuts to the tune of several billion dollars. Legislators have only a few days to complete the negotiations.

U.S. President Barack Obama has asked congressional leaders to come to the White House on Friday for talks with a view to reaching agreement on the prevention of tax increases and spending cuts next year.

The euro fell against most of its 16 major counterparts after data showed that producer prices in Italy in November decreased by 0.1% compared with October, the decline has been observed for the third consecutive month. At the same time, the data on GDP growth in France in the 3rd quarter were revised by the National Bureau of Statistics on Friday to 0.1% from 0.2% previously announced due to reduction in investment.

Japanese Yen recovered against the U.S. dollar and the euro in low trading volume on Friday after Japanese Finance Minister Taro Aso said that Japan is not seeking a sharp decline in its national currency.

According to Aso, the U.S. government should work hard to achieve a strengthening of the dollar, while Japan is not seeking "a radical weakening of the yen." Such statements helped the yen to recover some lost ground against the dollar and the euro during the European session.

Earlier, the Japanese currency reached a 28-month low against the dollar and a 17-month low against the euro. The Japanese currency fell against major currencies after data earlier on Friday who reported that industrial production in Japan in November decreased by 1.7% compared to the previous month. This report was worse than expected. Meanwhile, data on consumer prices indicated that the country is still suffering from deflation.