Investing.com - The dollar traded mixed to lower against most
major currencies on Friday after soft consumer sentiment data added
to already growing uncertainty as to when the Federal Reserve will
begin to scale back stimulus measures.
The release of the Bank of Japan's minutes from its May monetary
policy meeting suggested stimulus programs in Japan may face an
exit strategy, which strengthened the yen against the dollar,
though better-than-expected wholesale pricing data in the U.S. gave
the greenback some support.
In U.S. trading on Friday, EUR/USD was down 0.21% at 1.3346.
The U.S. Bureau of Labor Statistics reported earlier that the U.S.
producer price index rose 0.5% in May, beating expectations for a
0.1% rise after a 0.7% decline the previous month, which gave the
dollar some support.
The core producer price index, which is stripped of the more
volatile food and energy costs, rose 0.1% last month, in line with
expectations, after a 0.1% gain in April.
However, the Federal Reserve reported earlier industrial production
in the U.S. came in flat in May, missing expectations for a 0.2%
rise though up from a 0.4% contraction the previous month.
Weaker-than-expected consumer sentiment data pushed the greenback
lower, especially against the yen.
Thomson Reuters/University of Michigan's preliminary consumer
sentiment index fell to 82.7 in June from 84.5 in May.
Analysts were expecting the reading to remain unchanged at 84.5.
Elsewhere in the eurozone, official data revealed that the consumer
price index remained unchanged in May at an annualized rate of
1.4%, in line with expectations.
Core consumer price inflation in the single currency bloc, which is
stripped of food, energy, alcohol and tobacco items, rose to an
annualized rate of 1.2% last month from 1% the previous month, in
line with expectations.
The greenback, meanwhile, was up against the pound, with GBP/USD
trading down 0.10% at 1.5705.
The dollar was down against the yen, with USD/JPY down 1.03% at
94.39, and down against the Swiss franc, with USD/CHF trading down
0.09% at 0.9214.
The yen strengthened against the dollar after BoJ policymakers said
the bank should specify a 2-year limit for its monetary easing to
help quell bond-market volatility, according to the minutes of the
BoJ's May 21-22 meeting.
The dollar was up against its cousins in Canada, Australia and New
Zealand, with USD/CAD up 0.13% at 1.0172, AUD/USD down 0.54% at
0.9588 and NZD/USD trading down 0.48% at 0.8059.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.06% at
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