Euro higher vs dollar for sixth day

The euro recorded its sixth straight gain against the dollar Friday as caution reigned in markets ahead of next week's Federal Reserve meeting and data releases on the Chinese economy.

The euro pushed to $1.1333, up 0.5 percent from Thursday and up 1.7 percent from a week ago.

The greenback also sagged against the yen, but edged higher against the pound.

Traders held cautious as a number of market signals are looming in the coming week: besides the Fed, meetings of the Japanese and Swiss central banks; and more key data related to economic growth from the United States and China.

The biggest event is the Fed's September policy review, with an announcement on Thursday of whether it will go ahead or not with the first hike in the benchmark federal funds rate since 2006.

Even if long-flagged, that has global markets on edge and economists debating vociferously over whether the US central bank should take that step or not.

Kathy Lien of BK Asset Management noted that US economic data has been strong enough to justify an increase.

But, she said, "the Fed does not operate in a vacuum, and between the volatility in international equities, the dovishness of the ECB, and the dovish bias of other central banks, it will be difficult for (Fed Chair) Janet Yellen to pull the trigger."

"It will be a difficult decision for the central bank and for this reason we expect investors to reduce their exposure to long dollar positions ahead of Thursday's rate decision."

Related to the story

Shilling to weaken further, foreign currency denominated loans to suffer

Bank of Uganda explains shilling fall against dollar

Greek crisis could weaken Ugandan shilling further