Investing.com - The dollar trimmed gains higher against a basket of other major currencies on Friday, even after data showed that U.S. producer prices rose slightly more than expected last month, as investors awaited the release of a U.S. consumer sentiment report later in the day.
In a report, the U.S. Department of Labor said that its producer price index rose 0.5% in May, just above expectations for a 0.4% uptick, after a 0.4% slip the previous month.
Year-on-year, producer prices declined by 1.1% last month, in line with expectations, after a 1.3% drop in April.
Core producer prices, which exclude food and energy, ticked up 0.1% in May, in line with market expectations and following a 0.2% fall in April.
Investors were looking ahead to a preliminary report on U.S. consumer sentiment due later in the trading session, for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at 95.23, after rising to a four-day high of 95.67 earlier in the day.
EUR/USD was down 0.26% at 1.1232. The euro remained under pressure after the International Monetary Fund pulled out of Greek debt talks on Thursday as it accused Athens of failing to compromise over labour market and pension reforms.
The IMF said its team of negotiators had quit talks in Brussels after reaching a stalemate and would be returning to Washington.
Greek Prime Minister Alexis Tsipras was scheduled to resume talks in Brussels with European commission President Jean-Claude Juncker on Friday. However, such a meeting is now in doubt.
A government spokesman said Greece's negotiating team is "ready" to intensify efforts to wrap up a deal "even in the next 24 hours."
USD/JPY rose 0.20% to 123.68 as market participants chose to forget comments by Bank of Japan Governor Haruhiko Kuroda on Wednesday suggesting that the relative value of the yen may not continue to fall.
Elsewhere, GBP/USD eased 0.09% to 1.5504, while USD/CHF fell 0.23% to trade at 0.9306.
The Australian and the New Zealand dollars remained weaker, with AUD/USD dropping 0.60% to 0.7707 and with NZD/USD down 0.55% to 0.6973.
Earlier Friday, data showed that New Zealand's Business Manufacturing Index ticked down to 51.5 in May from a reading of 51.8 the previous month.
USD/CAD added 0.18% to trade at 1.2315.