(Recasts, adds U.S. data, comment, updates prices, changes
byline, dateline; previous LONDON)
* Oil sinks below $30 a barrel
* Aussie, kiwi, Canadian dollars all dive 1 percent or more
* Soft U.S. data undermines U.S. dollar
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 15 (Reuters) - The dollar tumbled to a near
five-month low against the yen and a 2-1/2-week trough versus
the euro on Friday, hammered by a combination of poor risk
appetite arising from a renewed drop in oil prices and weak U.S.
economic data.
The dollar index, which measures the greenback against a
basket of six other major currencies, was down 0.5 percent at
98.614 .DXY .
Commodity-based currencies such as the Australian, New
Zealand and Canadian dollars also sank on the back of another
slide in Chinese stock markets .SSEC following an almost 5
percent tumble in oil prices CLc1 LCOc1 to less than $30 per
barrel.
"We had a tentative bounce in risk yesterday, but that was
quickly reversed in Asia, and the soft U.S. data is really
adding to the risk-off mood," said Vassili Serebriakov, currency
strategist at BNP Paribas (PA:BNPP) in New York.
Data showed on Friday that U.S. retail sales fell in
December as unseasonably warm weather curbed purchases of winter
apparel and cheaper gasoline weighed on receipts at service
stations. U.S. producer prices were also lower last month due to
weak energy costs, while the country's industrial output
declined for a third straight month.
Following the poor U.S. economic data, the interest rate
futures market has now priced in just one additional rate move
by the Federal Reserve this year, compared with expectations of
three hikes.
"The oil market is just a mess and it all seems to be
stemming from that," said Tobias Davis, a currency hedging
manager with Western Union in London.
In mid-morning trading, the dollar fell to 116.60 yen
JPY= , the lowest since Aug. 24. It was last at 116.89, down
nearly 1 percent.
The euro rose to $1.0984 EUR= , its highest since Dec. 29,
and was last at $1.0959, up 0.9 percent.
The Aussie dived to US$0.6865 AUD= versus the greenback,
the lowest since April 2009, while the New Zealand dollar fell
to a 3-1/2-month trough of US$0.6382 NZD= .
The Canadian dollar, meanwhile, dropped to a fresh 12-year
low against the U.S. dollar. The greenback was last up 0.7
percent at C$1.4473 CAD=
Richard Benson, co-head of portfolio management at currency
fund Millennium Global, said the Canadian dollar, down by a
third in value against its U.S. counterpart since 2012, was
suffering from bets on more easing of monetary policy next week.
"A lot of people are expecting the Bank of Canada to cut
rates again next week," he said. "Its about 50-50 priced and the
weakness of the currency might yet stop them. But dollar-Canada
roofed it this morning."