Flight into "Safe-haven", Melonjak Dollar Against Euro

Dollar surged against the euro on Friday (Saturday morning GMT), amid concern at the Greek budget deficit and the weak U.S. economic data is encouraging investment flight to "safe-haven" (safe haven) greenback.

The euro fell sharply to 1.4385 dollars at 2200 GMT from 1.4501 dollars late Thursday in New York, falling below the psychological level of 1.4400 for the first time in a week.

The European single unit to reach the lowest intra-day 1.4356 dollars, its lowest since December 21.

But the dollar fell against the Japanese currency, other safe-haven, menjhadi 90.82 yen from 91.23 yen a day earlier.

The market is very disturbed by the fear that kept that debt other euro zone members could face the same fate as the debt and deficit that hit Greece.

German Chancellor Angela Merkel Friday denied that he had berusahamengkritik Greece a day earlier with the prediction that the euro will face "very difficult phase" because the budget crisis of Athens.

In a rare critical statement made on Wednesday, Merkel has voiced concern that "the euro is in a very difficult phase for many years to come" because of the failure of Greek debt have prompted speculation about the cohesion of the euro zone.

Weak U.S. economic data this week also showed that the recovery in the world's largest economy may not be as strong as earlier thought, triggering a flight from risky assets such as stocks to the dollar considered more secure.

Wall Street stocks suffered their biggest decline in about a month as investors ignored a fourth-quarter profit that "handsome" from the leading chip maker Intel and the banking giant JPMorgan Chase.

"Avoidance of risk finally hit the foreign exchange market following another round of weak U.S. economic data, said Kathy Lien, director of currency research at Global Forex Trading.

"The dollar rallied against a currency that gives a higher yield because there are a lot of disappointment that the market can be taken before the optimism fades," he said.

"We're getting more and more evidence that the U.S. recovery not so strong as previously thought, especially compared with other countries in the world."

Friday the U.S. economic data failed to excite investors.

Consumer sentiment measured by the University of Michigan was under expectations, while industrial production in December rose 0.6 percent, the same steps the previous month after a revised down November report.

December consumer price growth was also slower at 0.1 percent, according to a government report which "confirms that the discounts caused weak consumer spending last month," said Lien.

In late New York trading, the dollar rose to 1.0260 Swiss francs from 1.0182. British pound fell to 1.6260 dollars from 1.6332. (AntaraNews)