* Dollar pares gains after upbeat U.S. data
* Dollar gains vs yen after dour Japanese data
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 22 (Reuters) - The dollar drifted higher on Friday after three straight days of losses, and riskier currencies fell, as bleak non-U.S. economic data gave global equity markets reason to pause after another week of record highs.
As a safe haven, the U.S. currency tends to rise in times of financial and economic stress that result in lower risk appetite.
U.S. stocks and Treasury yields were lower as well, suggesting a generally somber mood in financial markets.
The dollar did pare gains and other riskier currencies cut losses after upbeat U.S. economic data - a rise in factory activity to its highest in more than 13 years in January and an unexpected 0.7% gain rise in existing home sales. greenback had fallen against a basket of currencies for the past three sessions as market optimism about new U.S. President Joe Biden's fiscal stimulus plans prompted traders to seek riskier assets, producing gains in riskier currencies such as the New Zealand and Australian dollar.
But that trend paused on Friday as market sentiment pulled back. Global shares slipped off record highs as the U.S. dollar steadied, up 0.2% on the day at 90.265 =USD .
The dollar index though was still on track for its biggest weekly loss since mid-December.
"Optimism gave way to renewed worry Friday as (coronavirus) infection rates rose in China and data across Europe offered evidence of the containment measures undermining recoveries," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
Gloomy economic data did little to brighten the mood, as UK data showed British retailers struggled to recover in December. activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc's dominant service industry hard. late morning trading, the dollar rose 0.3% against the yen to 103.835 JPY=EBS .
Data from Japan overnight showed factory activity slipped into contraction in January and the services sector was more pessimistic as emergency measures to combat a COVID-19 resurgence dampened sentiment. Australian dollar fell after disappointing retail sales data, but was still set for a weekly rise. It was last down 0.6% at US$0.7720 AUD=D3 . New Zealand dollar was down around 0.6% at US$0.7179 versus the U.S. dollar NZD=D3 .
The euro was little changed at $1.2172 EUR=EBS .
The single currency rose on Thursday after the European Central Bank's policy rate announcement, with the ECB saying it might not need to use its full asset-purchase envelope. President Christine Lagarde also said the bank was "very carefully" monitoring the euro exchange rate, which in 2020 soared nearly 9% against the dollar.
The Norwegian crown was hurt by lower commodity prices, slumping 1.2% against the dollar to 8.4855 NOK=D3 .
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Currency bid prices at 11:08AM (1608 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
90.1700
90.1080
+0.08%
+0.00%
+90.3070
+90.0390 Euro/Dollar
EUR=EBS
$1.2177
$1.2169
+0.05%
-0.35%
+$1.2190
+$1.2152 Dollar/Yen
JPY=D3
103.7600
103.5100
+0.29%
+0.50%
+103.8800 +103.5100 Euro/Yen
EURJPY=
126.33
125.91
+0.33%
-0.46%
+126.3900 +125.9000 Dollar/Swiss
0.8851
0.8851
+0.01%
+0.06%
+0.8866
+0.8840 Sterling/Dollar GBP=D3
$1.3676
$1.3736
-0.43%
+0.11%
+$1.3735
+$1.3636 Dollar/Canadian CAD=D3
1.2706
1.2638
+0.54%
-0.22%
+1.2720
+1.2635 Aussie/Dollar
AUD=D3
$0.7724
$0.7765
-0.52%
+0.41%
+$0.7769
+$0.7702 Euro/Swiss
EURCHF=
1.0778
1.0767
+0.10%
-0.27%
+1.0779
+1.0764 Euro/Sterling
EURGBP=
0.8902
0.8857
+0.51%
-0.39%
+0.8918
+0.8858 NZ
NZD=D3
$0.7184
$0.7220
-0.50%
+0.04%
+$0.7224
+$0.7167 Dollar/Dollar
Dollar/Norway
NOK=D3
8.4805
8.4050
+1.16%
-0.98%
+8.5050
+8.4130 Euro/Norway
EURNOK=
10.3278
10.2280
+0.98%
-1.33%
+10.3510
+10.2280 Dollar/Sweden
8.2870
8.2691
+0.29%
+1.11%
+8.3020
+8.2643 Euro/Sweden
EURSEK=
10.0920
10.0624
+0.29%
+0.15%
+10.0985
+10.0617
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https://tmsnrt.rs/2RBWI5E
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