The dollar weakened on Friday, giving back some recent gains versus the euro ahead of next week’s crucial European Central Bank Meeting.
The ECB is widely expected to inject substantial cash into the euro zone economy in an attempt to combat deflation.
Still, the euro managed to steady amid a flurry of economic news from around the globe.
The dollar eased to $1.3636 from a 3-month peak near $1.3580 against the euro.
Germany’s retail sales fell unexpectedly in April after rising for three consecutive months, Destatis said. Retail sales turnover declined by a real 0.9 percent from March, when it was up 0.1 percent. Sales were expected to rise 0.2 percent.
The buck turned away from a 2-month peak against the sterling, slipping to $1.6760 from $1.6710.
Choppy dealing left the dollar slightly lower at Y101.75 versus the yen, although the buck managed to stay away from a recent 4-month low near Y101 this week.
Inflation figures released today lowered expectation for the Bank of Japan to offer stimulus this summer.
Japan’s first nationwide inflation figures following a sales tax increase showed stronger-than-expected price growth.
core consumer-price index rose 1.5 percent from a year earlier in April, excluding the impact of a three-percentage point sales-tax increase to 8 percent.
In economic news from the U.S., personal income rose in line with economist estimates in the month of April, but an unexpected drop in personal spending for the month hurt the dollar.
Consumer sentiment in the U.S. deteriorated by slightly less than initially estimated in the month of May, according to a report released by Thomson Reuters and the University of Michigan on Friday.
The report showed that the final reading on the consumer sentiment index for May came in at 81.9, reflecting a modest upward revision from the mid-month reading of 81.8.
Meanwhile, MNI Indicators released a report on Friday showing that its reading on Chicago-area business activity unexpectedly rose to a seven-month high in May.
MNI Indicators said its Chicago business barometer climbed to 65.5 in May from 63.0 in April, with a reading above 50 indicating an increase in activity.