Dollar eases further in afternoon

The dollar eased versus major currencies in mid-afternoon London trade after a smaller than expected rise in US industrial output in November, dealers said.

Industrial production registered a 0.1% rise, the first increase in four months, in November from the previous month.

The consensus forecast of Wall Street economists was for industrial production to rise 0.2% in November.

However excluding motor vehicles and parts, industrial production was down 0.2% in November, marking the third decline out of the last four months.

"The industrial production figures was almost in line with expectations, but the dollar's reactions confirms that we are in an environment where any news is bad news for the dollar," said Audrey Childe-Freeman economist at CIBC World Markets.

"However the data does highlight a soft manufacturing sector, and the dollar is struggling on the back of it," she added.

At 2.25 pm, the euro-dollar traded at $1.0324 up from $1.0313 prior to the release, sterling at $1.6003 versus 1.5992 and dollar-Swiss franc traded at 1.4268, down from 1.4285 earlier.