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By Caroline Valetkevitch
NEW YORK (Reuters) - The U. S. dollar fell to a more than three-year low against the euro on Friday, extending recent losses on expectations European Central Bank policymakers are preparing to reduce stimulus, while U. S. stocks continued to rally and marked record closing highs.
Optimism about fourth-quarter earnings boosted stocks. Bank shares climbed following quarterly results from JPMorgan Chase & Co
The euro's rise weighed on the dollar index <. DXY>, which measures the greenback against six rival currencies. The index was down 1 percent, after slipping to a four-month low of 90.954.
For the year, the dollar index was down 1.28 percent, its worst performance over a year's first nine trading days since 2010, according to Reuters data.
"It seems like the economy is going OK, inflation is kind of nonexistent right now, wage growth is not an issue for most income statements, so what's not to like here?" said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
The Dow Jones Industrial Average <. DJI> rose 228.46 points, or 0.89 percent, to 25,803.19, the S&P 500 <. SPX> gained 18.68 points, or 0.67 percent, to 2,786.24, and the Nasdaq Composite <. IXIC> added 49.29 points, or 0.68 percent, to 7,261.06.
The pan-European FTSEurofirst 300 index <. FTEU3> rose 0.23 percent, and MSCI's gauge of stocks across the globe <. MIWD00000PUS> gained 0.66 percent.
A robust U. S. inflation report boosted Treasury yields.
The two-year yield
In commodities, oil prices rose for a sixth day after Russia's oil minister said global crude supplies were "not balanced yet," alleviating market concerns about a wind-down of the OPEC-led deal to reduce production.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)