(Updates prices, adds analyst comment, adds FX table) By Hannah Lang and Joice Alves WASHINGTON/LONDON, March 24 (Reuters) - The euro and sterling fell sharply against a strengthening dollar on Friday amid nervousness over banks, with better-than expected economic data failing to lift sentiment. Banking stocks plunged in Europe with heavyweights Deutsche Bank and UBS Group pummelled by worries that the worst problems to hit the sector since the 2008 financial crisis have not yet been contained. The dollar index rose 0.497% at 103.100, with the euro down 0.68% to $1.0756. "Over many, many years, whenever there's perceived or actual problems that look like they might be deep-rooted, people go to the dollar, and I think that's probably all it is right now, said Joseph Trevisani, senior analyst at FXStreet.com. Better-than-expected flash Purchasing Managers' Index (PMI) data failed to lift the single currency as sentiment in markets were fragile with European banks falling more than 3%. "The data were better than expected, but the mood in the market is risk aversion, which is supporting another move back to the safe haven dollar," said Jane Foley, Head of FX Strategy at Rabobank London. Risk aversion also sent sterling 0.48% lower to $1.2226, despite data showing the British economy was set to grow in the first quarter and confidence was growing. The pound touched a seven-week high of $1.2341 on Thursday in volatile trading after the Bank of England raised interest rates by 25 bps to 4.25%, but said a surprise resurgence in inflation would probably fade fast, stoking speculation it had ended its run of hikes. Banking stocks have been battered this month following the sudden failures of two regional U.S. lenders and the emergency sale of embattled Swiss bank Credit Suisse to rival UBS. SAFE-HAVEN DEMAND The FX world seemed to suggest a bout of risk aversion with safe-haven proxies, gold and yen outperforming and most other currencies softer, according to Christopher Wong, currency strategist at OCBC. The safe-haven yen was in demand, and strengthened 0.29% versus the greenback at 130.43. The Fed on Wednesday raised interest rates by 25 basis points, as expected, but took a cautious stance on the outlook because of banking sector turmoil even as Fed Chair Jerome Powell kept the door open on further rate rises if necessary. U.S. Treasury Secretary Janet Yellen reiterated on Thursday that she was prepared to take further action to ensure Americans' bank deposits stayed safe, to ease investor nerves. The markets will be closely watching next week's readout of the personal consumption expenditures (PCE) price index, due March 31, for indications as to how the print could influence the Fed's upcoming rate decisions, said Trevisani. "If you get a as expected or weaker number, I think that gives the Fed reason to pull back, which is what they're doing anyway," he said. ======================================================== Currency bid prices at 10:45AM (1445 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 103.1000 102.6000 +0.50% -0.377% +103.3600 +102.5000 Euro/Dollar $1.0759 $1.0832 -0.67% +0.41% +$1.0839 +$1.0714 Dollar/Yen 130.4350 130.8300 -0.29% -0.50% +130.9300 +129.6450 Euro/Yen 140.35 141.73 -0.97% +0.02% +141.8500 +139.0800 Dollar/Swiss 0.9185 0.9164 +0.23% -0.67% +0.9216 +0.9157 Sterling/Dollar $1.2228 $1.2285 -0.48% +1.10% +$1.2290 +$1.2192 Dollar/Canadian 1.3775 1.3716 +0.45% +1.69% +1.3804 +1.3710 Aussie/Dollar $0.6647 $0.6684 -0.55% -2.49% +$0.6694 +$0.6625 Euro/Swiss 0.9881 0.9925 -0.44% -0.14% +0.9940 +0.9850 Euro/Sterling 0.8796 0.8814 -0.20% -0.54% +0.8828 +0.8778 NZ $0.6206 $0.6249 -0.67% -2.24% +$0.6252 +$0.6193 Dollar/Dollar Dollar/Norway 10.4890 10.4010 +0.94% +6.98% +10.5850 +10.3810 Euro/Norway 11.2899 11.2504 +0.35% +7.59% +11.3575 +11.2366 Dollar/Sweden 10.4208 10.3248 +0.16% +0.12% +10.4726 +10.3055 Euro/Sweden 11.2078 11.1901 +0.16% +0.57% +11.2302 +11.1758 (Reporting by Hannah Lang in Washington and Joice Alves in London; Additional reporting by Ankur Banerjee in Singapore; editing by Angus MacSwan and Mark Heinrich)
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2023-03-24 14:55:24Z
CBMiTmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9mb3JleC1ldXJvLXN0ZXJsaW5nLWZhbGwtYWdhaW5zdC0xNDU1MjQzMzkuaHRtbNIBVmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL2ZvcmV4LWV1cm8tc3RlcmxpbmctZmFsbC1hZ2FpbnN0LTE0NTUyNDMzOS5odG1s
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