Investing.com - The dollar remained close to five-month lows against the other major currencies on Friday, after the release of downbeat U.S. consumer sentiment data and as the Federal Reserve’s latest policy statement continued to weigh on the greenback.
EUR/USD was down 0.23% at 1.1290.
In a preliminary report, the University of Michigan said its consumer sentiment index fell to 90.0 in March from 91.7 the previous month, compared to expectations for an increase to 92.2.
Sentiment on the greenback remained vulnerable after the Fed left its monetary policy unchanged on Wednesday and said that it is likely to raise interest rates twice this year – and not four times, as initially estimated.
Fed policymakers said the U.S. economy faces risks from an uncertain global economy, although moderate growth and "strong job gains" would allow it to tighten policy this year.
USD/JPY edged up 0.11% to 111.51.
Earlier Friday, the minutes of the Bank of Japan’s January policy meeting showed that policymakers made two proposals, one to expand the bank's asset-buying program and another to add negative interest rates to asset purchases.
According to the minutes, the BOJ eventually decided to adopt the negative interest rate policy after several members argued the move would help prevent external factors from delaying the eradication of Japan's "deflationary mindset".
The dollar was little changed against the pound and the Swiss franc, with GBP/USD at 1.4491 and with USD/CHF at 0.9679.
Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.52% at 0.7607 and with NZD/USD declining 0.74% to 0.6798.
USD/CAD added 0.14% to 1.2996, off Thursday’s five-month low of 1.2941.
Statistics Canada reported on Friday that retail sales increased by 2.1% in January, exceeding expectations for a 0.6% gain.
Core retail sales, which excludes automobiles, rose 1.2% in January, compared to expectations for a 0.4% uptick.
A separate report showed that Canada’s consumer price index rose 0.2% last month, disappointing expectations for a 0.4% gain. Year-on-year, consumer prices increased by 1.4% in February, compared to expectations for a 1.5% rise.
Core CPI, which exlude the eight most volatile items, rose by 0.5% last month, in line with expectations, after a 0.3% uptick in January.
The commodity-related loonie remained supported as oil prices moved back above $40 a barrel amid fresh hopes for a potential production cut by major oil producers.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.20% at 94.97, still close to a five-month low of 94.61 hit overnight.