The dollar fell sharply versus the euro on Friday, hitting its lowest since December amid the release of data showing a surprising uptick in euro zone inflation.
Disappointing U.S. GDP figures kept the dollar from making any comeback later in the day.
U.S. GDP expanded at a 2.4 percent annual rate in the fourth quarter, the Commerce Department reported today, down sharply from the 3.2 percent pace reported last month and the 4.1 percent logged in the third quarter.
A pair of top officials at the Federal Reserve say they have not changed their outlook for relatively strong growth in 2014 despite the rough winter.
St. Louis Fed President James Bullard and Philadelphia Federal Reserve Charles Plosser said in separate TV interviews they remain optimistic about U.S. growth in 2014, suggesting the Fed will carry on with tapering QE3.
The buck slipped to $1.3814 from near $1.37, edging toward a yearly low of $1.3892 set back in December.
Eurozone inflation came in at 0.8 percent for the third consecutive month in February, flash estimate from Eurostat showed. The rate was forecast to slow to 0.7 percent.
The European Central Bank may hesitate to ease monetary policy in light of the inflation report and a recent string of decent economic data.
Germany’s retail sales rose more than expected in January from the previous month, official data show today. Retail sales grew 2.5 percent month-on-month, reversing a 2 percent decline in December. Economists had expected a 1 percent gain.
The dollar was slightly weaker versus the sterling, easing to $1.675 from near $1.67.
The buck was basically flat versus the yen at Y102.