* Dollar pares gains after upbeat U.S. data
* Aussie and Kiwi dollar fall
* Dollar gains vs yen after dour Japanese data
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 22 (Reuters) - The dollar drifted higher on Friday after three straight days of losses,
and riskier currencies fell, as bleak non-U.S. economic data gave global equity markets reason to pause
after another week of record highs.
As a safe haven, the U.S. currency tends to rise in times of financial and economic stress that result
in lower risk appetite.
U.S. stocks and Treasury yields were lower as well, suggesting a generally somber mood in financial
markets.
The dollar did pare gains and other riskier currencies cut losses after upbeat U.S. economic data - a
rise in factory activity to its highest in more than 13 years in January and an unexpected 0.7% gain rise
in existing home sales. The greenback had fallen against a basket of currencies for the past three sessions as market optimism
about new U.S. President Joe Biden's fiscal stimulus plans prompted traders to seek riskier assets,
producing gains in riskier currencies such as the New Zealand and Australian dollar.
But that trend paused on Friday as market sentiment pulled back. Global shares slipped off record
highs as the U.S. dollar steadied, up 0.2% on the day at 90.265 =USD .
The dollar index though was still on track for its biggest weekly loss since mid-December.
"Optimism gave way to renewed worry Friday as (coronavirus) infection rates rose in China and data
across Europe offered evidence of the containment measures undermining recoveries," said Joe Manimbo,
senior market analyst at Western Union Business Solutions in Washington.
Gloomy economic data did little to brighten the mood, as UK data showed British retailers struggled to
recover in December. Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the
coronavirus pandemic hit the bloc's dominant service industry hard. In late morning trading, the dollar rose 0.3% against the yen to 103.835 JPY=EBS .
Data from Japan overnight showed factory activity slipped into contraction in January and the services
sector was more pessimistic as emergency measures to combat a COVID-19 resurgence dampened sentiment.
The Australian dollar fell after disappointing retail sales data, but was still set for a weekly rise.
It was last down 0.6% at US$0.7720 AUD=D3 . The New Zealand dollar was down around 0.6% at US$0.7179 versus the U.S. dollar NZD=D3 .
The euro was little changed at $1.2172 EUR=EBS .
The single currency rose on Thursday after the European Central Bank's policy rate announcement, with
the ECB saying it might not need to use its full asset-purchase envelope. ECB President Christine Lagarde also said the bank was "very carefully" monitoring the euro exchange
rate, which in 2020 soared nearly 9% against the dollar.
The Norwegian crown was hurt by lower commodity prices, slumping 1.2% against the dollar to 8.4855
NOK=D3 .
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Currency bid prices at 11:08AM (1608 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.1700 90.1080 +0.08% +0.00% +90.3070 +90.0390
Euro/Dollar EUR=EBS $1.2177 $1.2169 +0.05% -0.35% +$1.2190 +$1.2152
Dollar/Yen JPY=D3 103.7600 103.5100 +0.29% +0.50% +103.8800 +103.5100
Euro/Yen EURJPY= 126.33 125.91 +0.33% -0.46% +126.3900 +125.9000
Dollar/Swiss CHF=EBS 0.8851 0.8851 +0.01% +0.06% +0.8866 +0.8840
Sterling/Dollar GBP=D3 $1.3676 $1.3736 -0.43% +0.11% +$1.3735 +$1.3636
Dollar/Canadian CAD=D3 1.2706 1.2638 +0.54% -0.22% +1.2720 +1.2635
Aussie/Dollar AUD=D3 $0.7724 $0.7765 -0.52% +0.41% +$0.7769 +$0.7702
Euro/Swiss EURCHF= 1.0778 1.0767 +0.10% -0.27% +1.0779 +1.0764
Euro/Sterling EURGBP= 0.8902 0.8857 +0.51% -0.39% +0.8918 +0.8858
NZ NZD=D3 $0.7184 $0.7220 -0.50% +0.04% +$0.7224 +$0.7167
Dollar/Dollar
Dollar/Norway NOK=D3 8.4805 8.4050 +1.16% -0.98% +8.5050 +8.4130
Euro/Norway EURNOK= 10.3278 10.2280 +0.98% -1.33% +10.3510 +10.2280
Dollar/Sweden SEK= 8.2870 8.2691 +0.29% +1.11% +8.3020 +8.2643
Euro/Sweden EURSEK= 10.0920 10.0624 +0.29% +0.15% +10.0985 +10.0617
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