Dollar extends losses in London

The dollar slipped on Friday, extending losses against a basket of major currencies into a sixth session after a report showing robust US economic growth did little to overturn the market's view that interest rates are close to a peak.
The dollar edged lower after data showed the US economy grew at a steady clip of 4.8 percent in the first quarter - the fastest pace in two and a half years and broadly in line with expectations - but inflationary pressures in the data were softer than expected.
All up, that did little to uproot the market consensus that the Federal Reserve will likely take a break after raising rates by a quarter percentage point in May, especially after the central bank chief Ben Bernanke on Thursday said a pause was possible.
"Unfortunately for the US dollar, the (GDP) report does not change the view that the Fed will soon pause its rate tightening cycle," said Alex Buezelin, forex market analyst at Ruesch International in Washington DC.
In early New York trade, the euro was trading up 0.2 percent on the day around $1.2555, close to its 7-month high of $1.2568 reached earlier in the global day.
Sterling was up 0.35 percent against the dollar at $1.8080 after touching a 7-month high of $1.8097, while the greenback was mired near a seven-month low against a basket of six major currencies.
The dollar was up 0.2 percent against the yen at 114.30 yen, however, rebounding from Thursday's 3-month low of 113.81.
The dollar has been under heavy pressure since a weekend meeting of the Group of Seven industrialised nations that called for Asian countries such as China let their currencies rise more freely.
The dollar index is now down almost 3.6 percent this month and set for its worst month since at least November 2004.
The Swiss franc also hit a seven-month high, supported by expectations for higher Swiss interest rates after upbeat comments from the Swiss National Bank chairman, and also by safe-haven flows as tensions surrounding Iran escalated.
The International Atomic Energy Agency is likely to confirm in a report to the UN Security Council Friday that Iran has flouted demands to stop enriching uranium, a verdict that could lead to moves to hit Tehran with sanctions.
Most European markets are closed Monday for Labour Day and Japanese financial markets will be closed for a part of next week for the Golden Week holiday.