Investing.com - The dollar extended losses against the other major currencies on Friday as unexpectedly weak U.S. data on consumer spending and inflation clouded the outlook for higher interest rates this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was fell 0.65% to 95.31, re-approaching last week’s lows of 94.94.
U.S. retail sales were unchanged in July, the Commerce Department said.
The stall in retail sales followed an increase of 0.8% in June.
Economists had forecast a gain of 0.4%.
Another report showed that U.S. producer prices fell 0.4% in July, against expectations for a 0.2% increase.
The weak economic reports added to uncertainty over whether the Federal Reserve will hike interest rates again before then end of this year.
The U.S. central bank raised interest rates for the first time in almost a decade in December.
Higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.
The euro rose to the day’s highs, with EUR/USD advancing 0.69% to 1.1212, the most since August 3.
The dollar fell to the lowest levels of the day against the yen, with USD/JPY down 0.81% to 101.12.
The pound and the Swiss franc strengthened, with GBP/USD rising 0.44% to 1.3008 and USD/CHF down 0.39% to 0.9717.
The commodity linked currencies were also broadly higher, with USD/CAD sliding 0.32% to 1.2953.
AUD/USD was up 0.23% at 0.7716 and NZD/USD rose 0.4% to 0.7239.