The U.S. dollar rose against major currencies in late New York trading on Friday as better-than- expected data strengthened investors' confidence in the U.S. economy and the downgrade of Ireland's credit rating hurt the euro.
The U.S. Labor Department said its consumer price index increased 0.5 percent in March, mainly driven by high food and gasoline prices.
However, the University of Michigan's preliminary reading on consumer sentiment rose to 69.6 in April, above the forecasts, suggesting consumers were still confident in the economic prospects.
The U.S. Federal Reserve said industrial production rose 0.8 percent in March, posting the ninth consecutive increase, which also boosted optimism in the markets.
The Empire State Manufacturing Survey, which is a gauge of manufacturing in New York State, showed that the manufacturing activity surged in April. Its general business conditions index increased to 21.7, the highest level in a year, from 17.50 in March.
Meanwhile, the rating agency Moody's cut Ireland's credit rating by two notches, to Baa3 from Baa1, with a negative outlook. The decision added on investors' concerns over debt problems in the eurozone and weighed on the euro.
The dollar index, which measures the greenback's performance against a basket of six currencies, rose to 74.848 from 74.683 late Thursday.
In late Friday trading, the dollar bought 83.13 yen, comparing with 83.54 late Thursday, and the euro fell to 1.4436 dollars from 1.4490.
The British pound also fell to 1.6309 dollars from 1.6353. The dollar rose from 0.8925 to 0.8929 against the Swiss franc, and also rose to 0.9606 Canadian dollars from 0.9605.
