The dollar was little changed for a second day in a row Friday despite a flurry of U.S. economic data and dovish rhetoric from a Federal Reserve official.
Most of today’s news cemented expectations that the Fed will keep interest rates at or near zero for at least another year.
Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of August, according to a preliminary report released by Thomson Reuters and the University of Michigan.
Meanwhile manufacturing conditions in the New York region expanded at a notably slower pace than had been anticipated.
Producer prices in the U.S. showed only an anemic uptick in the month of July, according to a report released by the Labor Department.
As the data rolled in, Minneapolis Federal Reserve President Narayana Kocherlakota said labor markets remain weak and inflation will be subdued for years, allowing the Federal Reserve to continue its ultra-easy monetary policies.
The dollar eased a bit to $1.3390 versus the euro, staying near a recent 9-month peak.
Better-than-expected UK GDP figures helped the sterling stabilize after this week’s losses. The dollar held at $1.6688, having touched its highest since June.
The UK economy grew by 3.2 percent in the second quarter compared with the same period last year, slightly higher than the original 3.1 percent estimate.
The dollar remained stuck in a narrow range at Y102.30 versus the yen, with both currencies getting support from their perceived safe haven appeal.
Word of armed conflict between Ukrainian and Russian forces had traders on edge most of the day.
Ukrainian artillery destroyed a “significant” part of a Russian armored column that crossed into Ukraine during the night, according to Ukrainian President Petro Poroshenko. Russia denied the incident occurred.