NEW YORK, Oct 16 (Reuters) - The dollar rose against the euro on Friday, as risk tolerance dropped on data showing U.S. consumer sentiment eased in October and prompted safe-haven buying.
U.S. consumer sentiment fell unexpectedly this month on persistent worries that the "dismal" state of personal finances would not recover quickly from the worst recession in decades, a report showed on Friday.
"It's not a particularly good report as we saw a big drop in the outlook," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "It's a case of poor data hurting equities but supporting the dollar in a risk-off and risk-on mentality."
The euro was last down 0.5 percent at $1.4872
The Reuters/University of Michigan Surveys of Consumers said its preliminary index of sentiment for October fell to 69.4, from September's 73.5.
That was below economists' median expectation of a steady reading of 73.5, according to a Reuters poll. (Reporting by Nick Olivari and Gertrude Chavez-Dreyfuss, Editing by Chizu Nomiyama)