Investing.com - The dollar moved higher against against the other major currencies on Friday, after positive data from the U.S. added to optimism over the strength of the country's economy, fuelling more speculation over a possible September rate hike.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.23% at 95.96, off lows of 95.40 hit earlier in the session.
The dollar was steady against the yen, with USD/JPY at 121.02, after hitting session lows of 120.66.
The University of Michigan reported on Friday that its index of consumer sentiment ticked down to 91.9 this month from 92.9 in July. Analysts had expected the index to rise to 93.0.
The data came shortly after the U.S. Bureau of Economic Analysis reported that the goods trade deficit narrowed to $59.12 billion in July from $62.26 billion the previous month.
A separate report showed that U.S. personal spending rose 0.3% last month, disappointing expectations for an increase of 0.4%. U.S. personal income rose by 0.4% in July, in line with expectations.
The dollar remained supported after data on Thursday showed that U.S. gross domestic product grew at an annual rate of 3.7% in the second quarter, above expectations for growth of 3.2%.
The upbeat data added to optimism over the perspective for global economic growth, while concerns over volatility in global equity markets continued to subside.
The dollar turned higher against the euro, with EUR/USD down 0.18% to 1.1225, off highs of 1.1310 hit earlier in the day.
Earlier Friday, preliminary data showed that Germany's consumer price index was flat in August, compared to expectations for a 0.1% downtick, after a 0.2% gain the previous month.
The dollar was also higher against the pound, with GBP/USD down 0.38% at 1.5343 and but remained lower against the Swiss franc, with USD/CHF sliding 0.49% to 0.9617.
Markets shrugged a report by the Office for National Statistics on Friday showing that the U.K. GDP rose 0.7% in the second quarter, in line with expectations. On a yearly basis, the U.K. economy grew at a rate of 2.6% in the last quarter.
The Australian and New Zealand dollars were lower, with AUD/USD down 0.36% at 0.7140 and with NZD/USD shedding 0.36% to 0.6447.
Meanwhile, USD/CAD rose 0.33% to trade at 1.3244.