Investing.com - The dollar trimmed gains against a basket of other major currencies on Friday, after a string of disappointing U.S. economic reports fuelled fresh concerns over the strength of the recovery.
The University of Michigan said in a preliminary report that its consumer sentiment index fell to a seven-month low of 88.6 this month from 95.9 in April. Analysts had expected the index to decline to 96.0 in May.
The UoM also said its inflation expectations for the next 12 months ticked up to 2.9% this month from 2.6% in April.
In addition, the Federal Reserve reported that U.S. industrial production fell 0.3% in April, confounding expectations for a 0.1% rise, while U.S. manufacturing production was flat last month, compared to expectations for an increase for 0.2%.
The data came after the Federal Reserve Bank of New York said its Empire State manufacturing index rose to 3.9 in May from minus 1.19 the previous month. Analysts had expected the index to climb to 5.00 this month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.39, down from 94.09 hit earlier in the session.
The euro turned higher, with EUR/USD up 0.20% to 1.1427, close to Thursday's three-month peak of 1.1444.
Sentiment on the single currency remained vulnerable as Greek officials were set to hold talks with the euro area and the International Monetary Fund on Friday, amid mounting pressure for Athens to seal an agreement for aid as it runs out of cash reserves and time.
The pound also regained ground, with GBP/USD adding 0.13% to 1.5795, re-approaching Thursday's six-month peak of 1.5816
Elsewhere, the dollar was still higher against the yen and the Swiss franc, with USD/JPY up 0.12% to 119.34 and with USD/CHF advancing 0.59% to 0.9176.
In Switzerland, the Federal Statistical Office earlier reported that the producer price index fell 2.1% in March, compared to expectations for a downtick of 0.1%, after a 0.2% rise the previous month.
Year-on-year, producer prices dropped 5.2% in March, after a 3.4% decline in February.
The Australian and New Zealand dollars trimmed losses but remained weaker, with AUD/USD down 0.51% to 0.8040 and NZD/USD sliding 0.33% to 0.7475.
Meanwhile, USD/CAD edged up 0.19% to trade at 1.2009.
Statistics Canada reported on Friday that manufacturing sales rose 2.9% in March, exceeding expectations for a 1.2% increase. The change in manufacturing sales in February was revised to a 2.2% drop from a previously estimated 1.7% fall.