Investing.com - The dollar remained broadly lower against a basket of other major currencies on Friday, as the release of mixed U.S. economic reports did little to support the greenback and fuelled fresh speculation over the timing of a rate hike by the Federal Reserve.
In a preliminary report, the University of Michigan said that its consumer sentiment index ticked down to a nine-month low of 79.2 in August, from a reading of 81.8 the previous month. Analysts had expected the index to rise to 82.5 this month.
A separate report showed that U.S. industrial production rose 0.4% in July, beating expectations for a 0.3% gain, after an increase of 0.4% in June whose figure was revised from a previously estimated 0.2% rise.
Separately, the New York Federal Reserve said that its Empire State manufacturing index fell to a four-month low of 14.7 this month, from a reading of 25.6 in July, confounding expectations for a decline to 20.0.
Data also showed that U.S. producer price inflation rose 0.1% last month, in line with expectations, after a 0.4% increase in June.
Core producer price inflation, which excludes food, energy and trade, rose 0.2% in July, in line with market projections, and after a 0.2% gain the previous month.
The data added to pressure on the European Central Bank to do more to shore up growth after it cut rates to record lows in June.
The pound held steady, still close to four month lows, with GBP/USD at 1.6690. Sterling showed little reaction after official data showed, in a second estimate, that U.K. gross domestic product grew 0.8% in the second quarter, in line with market expectations.
Year-on-year, the U.K. GDP expanded at a rate of 3.2%, compared to expectations for 3.1% growth.
The Canadian dollar hit two-and-a-half week highs, with USD/CAD down 0.13% to 1.0888 after Statistics Canada said, in a revised report, that the economy added 41,700 jobs last month, beating expectations for an increase of 20,000 and after a 9,400 decline in June.
Canada's statistics agency had announced Tuesday that an error in the previous week's employment report had come to light and a review had been launched.
Canada's unemployment rate still remained at 7.0% for July, in line with market expectations and down from 7.1% in June.
A separate report showed that manufacturing sales in Canada rose 0.6% in June, compared to expectations for a 0.5% gain. May's figure was revised to a 1.7% increase from a previously estimated 1.6% rise.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% at 81.49.
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