Investing.com - The dollar weakened broadly against the other major currencies on Friday, after the release of mixed U.S. economic reports, as U.S. budget concerns and uncertainty over the future of the Federal Reserve's stimulus program continued to dominate market attention.
During U.S. morning trade, the dollar was lower against the yen, with USD/JPY retreating 0.69% to 98.33.
The yen gained ground against the dollar after Japanese Finance Minister Taro Aso said that he is not thinking of lowering the corporate tax rate.
In the U.S., the University of Michigan said its consumer sentiment index fell to 77.5 in September, from a reading of 76.8 the previous month. Analysts had expected the index to rise to 78.0 this month.
The report came after official data showed that U.S. personal spending rose 0.3% in August, in line with expectations, after an upwardly revised 0.2% increase the previous month.
Data also showed that personal income in the U.S. rose 0.4% last month, as expected, after an upwardly revised 0.2% gain in July.
A separate report showed that core personal consumption expenditures, excluding food and energy, rose 0.2% in August, more than the expected 0.1% gain, after a 0.1% increase in July.
The data came amid ongoing uncertainty over whether the Fed will soon begin taperints bond-buying program. Three top Fed officials said on Thursday the central bank had confused markets over its policy outlook.
Separately, U.S. budget concerns persisted after Republican leaders in the U.S. House of Representatives refused on Thursday to give in to President Barack Obama's demand for straightforward bills to run the government beyond September 30 and to increase borrowing authority to avoid a default.
Elsewhere, the euro was higher against the dollar, with EUR/USD climbing 0.42% to 1.3545.
Preliminary data earlier showed that German consumer price inflation was flat in September, in line with market expectations.
The dollar was lower against the pound and the Swiss franc, with GBP/USD gaining 0.46% to 1.6115 and USD/CHF declining 0.73% to trade at 0.9037.
Sterling strengthened after Bank of England Governor Mark Carney said to the Yorkshire Post that hhe sees no need for more bond-buying given the signs of recovery in the U.K. economy.
In Switzerland, data showed that the KOF economic barometer rose to 1.53 in September, from an upwardly revised reading of 1.37 the previous month, compared to expectations for a rise to 1.47.
Elsewhere, the greenback trimmed gains against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.49% to 0.9314, NZD/USD shedding 0.38% to 0.8258 and USD/CAD edging up 0.06% to 1.0316.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% to 80.30.
During U.S. morning trade, the dollar was lower against the yen, with USD/JPY retreating 0.69% to 98.33.
The yen gained ground against the dollar after Japanese Finance Minister Taro Aso said that he is not thinking of lowering the corporate tax rate.
In the U.S., the University of Michigan said its consumer sentiment index fell to 77.5 in September, from a reading of 76.8 the previous month. Analysts had expected the index to rise to 78.0 this month.
The report came after official data showed that U.S. personal spending rose 0.3% in August, in line with expectations, after an upwardly revised 0.2% increase the previous month.
Data also showed that personal income in the U.S. rose 0.4% last month, as expected, after an upwardly revised 0.2% gain in July.
A separate report showed that core personal consumption expenditures, excluding food and energy, rose 0.2% in August, more than the expected 0.1% gain, after a 0.1% increase in July.
The data came amid ongoing uncertainty over whether the Fed will soon begin taperints bond-buying program. Three top Fed officials said on Thursday the central bank had confused markets over its policy outlook.
Separately, U.S. budget concerns persisted after Republican leaders in the U.S. House of Representatives refused on Thursday to give in to President Barack Obama's demand for straightforward bills to run the government beyond September 30 and to increase borrowing authority to avoid a default.
Elsewhere, the euro was higher against the dollar, with EUR/USD climbing 0.42% to 1.3545.
Preliminary data earlier showed that German consumer price inflation was flat in September, in line with market expectations.
The dollar was lower against the pound and the Swiss franc, with GBP/USD gaining 0.46% to 1.6115 and USD/CHF declining 0.73% to trade at 0.9037.
Sterling strengthened after Bank of England Governor Mark Carney said to the Yorkshire Post that hhe sees no need for more bond-buying given the signs of recovery in the U.K. economy.
In Switzerland, data showed that the KOF economic barometer rose to 1.53 in September, from an upwardly revised reading of 1.37 the previous month, compared to expectations for a rise to 1.47.
Elsewhere, the greenback trimmed gains against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.49% to 0.9314, NZD/USD shedding 0.38% to 0.8258 and USD/CAD edging up 0.06% to 1.0316.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% to 80.30.