Dollar Falling On Disappointing Consumer Sentiment Data
The dollar got off to a positive start Friday, but has turned lower against its major rivals in the afternoon. The release of the weaker than expected consumer sentiment has had a negative impact on investor sentiment ahead of the weekend.
Partly reflecting concerns about inflation, the University of Michigan released a report on Friday unexpectedly showing a notable deterioration in U.S. consumer sentiment in the month of August. The preliminary report said the consumer sentiment index dropped to 95.3 in August after edging down to 97.9 in July. Economists had expected the index to inch up to 98.0.
A report released by the Conference Board on Friday showed a bigger than expected increase by its index of leading U.S. economic indicators in the month of July. The Conference Board said its leading economic index climbed by 0.6 percent in July following a 0.5 percent increase in June. Economists had expected the index to rise by 0.4 percent.
The dollar has dropped to a 1-week low of $1.1445 against the Euro Friday, from an early high of $1.1366.
Eurozone inflation accelerated for a third straight month in July, as initially estimated, to its highest level since late 2012, final data from Eurostat showed Friday. The harmonized index of consumer prices rose 2.1 percent year-on-year in July, after climbing 2 percent in June. The rate came in line with the estimate published on July 31.
The euro area current account surplus remained unchanged in June, data from the European Central Bank showed Friday. The current account surplus totaled a seasonally adjusted EUR 24 billion in June, the same as seen in May.
The buck has slipped to around $1.2750 against the pound sterling Friday afternoon, from an early high of $1.2697.
The greenback reached an early high of Y111.052 against the Japanese Yen Friday, but has since pulled back to around Y110.600.