* Robust U.S. data helps dollar
* Investors taking profits in short dollar bets
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds new comment, U.S. data, FX table, updates prices, changes byline, dateline)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 30 (Reuters) - The dollar rose on Friday, extending gains after upbeat data on U.S.
personal income and spending as well as manufacturing in the U.S. Midwest, with market participants also
taking profits on the currency's short dollar positions this month.
The dollar index was down 2.4% for the month of April, its worst monthly performance since July 2020.
Data showing a 4.2% rebound in U.S. consumer spending in March, amid a 21.1% surge in income as
households received additional COVID-19 relief money from the government, supported the dollar. That led to
a 0.4% rise in the core personal consumption expenditures (PCE) index, compared with a gain of 0.3% the
previous month. "This will be the third time this year that the PCE reading has beaten expectations," Adam Corbett,
currency analyst, at Cambridge Global Payments, said in a research note after the data.
"Fed Chair Jerome Powell remained firm on the Fed's interest rate path and QE (quantitative easing)
program on Wednesday, leaving traders with the uncomfortable feeling inflation could run away - and run away
quickly."
Similarly, the dollar also gained after the Chicago Purchasing Management Index (PMI) showed a reading
for April of 72.1, the highest in almost four decades.
In mid-morning trading, the dollar index =USD was set to end the week flat, although still down 2.4%
for the month as a whole. It was last up 0.4% at 91.007.
"This current strength in the dollar is likely a pivot to that seasonal trend that we tend to see in May
and June," said Mazen Issa, senior currency strategist at TD Securities in New York.
"Basically on the last day of Q1, we saw the dollar turn around to the softer side and continued
unabated since, despite strong payrolls at the start of April. Seasonal trends suggest that April is one of
the weaker months for the dollar."
The Canadian dollar CAD=D3 climbed to a more-than three-year high of C$1.2268 per greenback on Friday,
on track for a 1.6% weekly gain that would be its biggest since the start of November. The U.S. dollar was
last flat at C$1.2280.
After the Fed's policy meeting on Wednesday, Powell acknowledged the U.S. economy's growth, but said
there was not yet enough evidence of "substantial further progress" toward recovery to warrant a change to
its ultra-loose monetary settings. The Fed's dovishness was in marked contrast to the Bank of Canada, which has already begun to taper its
asset purchases. Canada's commodity-linked loonie got additional support from a surge in oil to a six-week
peak, along with higher lumber prices.
Rising commodity prices earlier supported the Australian dollar AUD=D3 , but in New York session it was
down 0.3% at US$0.7740 because of broad dollar strength.
The euro EUR=EBS traded 0.4% lower at $1.2071. It was up nearly 3% for the month versus the dollar and
down 0.2% on the week.
The dollar also rose against the yen, up 0.1% at 109.05 JPY=EBS , rising 1% for the week.
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Currency bid prices at 10:48AM (1448 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.9450 90.6200 +0.37% 1.071% +91.0450 +90.5880
Euro/Dollar EUR=EBS $1.2075 $1.2122 -0.38% -1.17% +$1.2127 +$1.2061
Dollar/Yen JPY=EBS 109.0750 108.9150 +0.15% +5.57% +109.1200 +108.7100
Euro/Yen EURJPY= 131.71 131.99 -0.21% +3.77% +132.1900 +131.4600
Dollar/Swiss CHF=EBS 0.9105 0.9089 +0.19% +2.93% +0.9118 +0.9082
Sterling/Dollar GBP=D3 $1.3867 $1.3946 -0.56% +1.50% +$1.3958 +$1.3845
Dollar/Canadian CAD=D3 1.2284 1.2278 +0.05% -3.53% +1.2294 +1.2266
Aussie/Dollar AUD=D3 $0.7739 $0.7766 -0.34% +0.60% +$0.7784 +$0.7731
Euro/Swiss EURCHF= 1.0994 1.1013 -0.17% +1.73% +1.1022 +1.0985
Euro/Sterling EURGBP= 0.8706 0.8691 +0.17% -2.58% +0.8717 +0.8682
NZ NZD=D3 $0.7196 $0.7243 -0.60% +0.25% +$0.7254 +$0.7192
Dollar/Dollar
Dollar/Norway NOK=D3 8.2715 8.1895 +1.12% -3.56% +8.2815 +8.1820
Euro/Norway EURNOK= 9.9880 9.9355 +0.53% -4.58% +9.9915 +9.9215
Dollar/Sweden SEK= 8.4203 8.3705 +0.21% +2.73% +8.4257 +8.3620
Euro/Sweden EURSEK= 10.1677 10.1460 +0.21% +0.91% +10.1746 +10.1385
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World FX rates https://tmsnrt.rs/2RBWI5E
Dollar heads for fourth weekly loss https://tmsnrt.rs/3b8GtJl
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