Dollar extends rise; focus on G-20, Italy's yields ( 10_YEAR 2_YEAR 30_YEAR TBT TLT BND AGG DXY UUP UDN FXE FXY EURUSD 10YR_ITA ) (by Deborah Levine)
NEW YORK (MarketWatch) -- The dollar extended gains against the euro on Friday as traders turned their attention back to Europe. The developments seen so far during the Group of 20 meeting "holds little scope of shoring up market sentiment, and market sentiment may weaken further over the near-term as world leaders resist calls to broaden the lending capacity of the International Monetary Fund," said David Song, a currency analyst at Daily FX. "As optimism surrounding the meeting quickly taper off, we may see the greenback end the week on a higher note, and the shift away from risk-taking behavior may carry into the following week as the outlook for the world economy turns increasingly bleak." Analysts also noted Italian bond yields again rising, with 10-year notes (it:10yr_ita) hitting 6.28%, near the highest level since the euro's inception. The dollar index (dxy) , which tracks the greenback against a basket of six major currencies, rose to 77.025 from 76.645 Thursday. The euro (cur_eurusd) declined to $1.3773 compared to $1.3839 in North American trade late Thursday.