Dollar broadly lower vs. rivals as sentiment mildly improves

The U.S. dollar was broadly lower against the other major currencies on Friday, as market sentiment mildly improved after the release of encouraging German economic data and amid hopes for progress on a financial aid deal for Greece.

During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.15% to 1.2903.

The German Institute for Economic Research said that its index of business confidence improved to 101.4 in November from a reading of 100.0 the previous month, beating expectations for a decline to 99.5.

The data came after a report on Thursday showed that Germany’s manufacturing purchasing managers’ index rose to 46.8 in November, up from 46.0 in October and better than forecasts for a reading of 45.9.

The euro zone’s manufacturing PMI rose to 46.2 this month from 45.4 in October, above expectations for a reading of 45.6, while French factory data also improved more-than-expected.

The euro also found support amid growing optimism that Greece's lenders are nearing an agreement to tackle the country's debt pile, as talks between European Union leaders continued in Brussels for a second consecutive day.

The greenback was steady against the pound, with GBP/USD dipping 0.03% to 1.5933.

The British Bankers' Association said earlier in a report that mortgage approvals in the U.K. rose more-than-expected in October, advancing to 33,000 from 31,500 the previous month.

Analysts had expected mortgage approvals to rise to 32,300 in October.

Elsewhere, the greenback edged lower against the yen and the Swiss franc, with USD/JPY falling 0.24% to trade at 82.27, and USD/CHF declining 0.11% to 0.9340.

The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.01% to 0.9972, AUD/USD edging 0.11% higher to 1.0402 and NZD/USD rising 0.21% to 0.8176

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.27% to 80.62.

Trade volumes were expected to remain light, with U.S. markets closing early for Thanksgiving weekend.