Investing.com - The dollar fell against the yen on Friday after data revealed output at U.S. factories, mines and utilities came in weaker than expected last month, though an upbeat consumer sentiment report cushioned the greenback's losses.
In U.S. trading, USD/JPY was down 0.32% and trading at 101.84, up from a session low of 101.58 and off a high of 102.41.
The pair was expected to test support at 100.75, the low from Feb. 4, and resistance at 102.70, Tuesday's high.
The preliminary Thomson Reuters/University of Michigan consumer sentiment index remained unchanged at 81.2 for February, beating expectations for a fall to 80.6.
The numbers boosted the dollar, though soft output data kept the greenback lower against the yen.
The Federal Reserve reported earlier that U.S. industrial production fell 0.3% in January, defying expectations for a 0.3% rise after a 0.3% increase the previous month.
Data also showed that U.S. import prices rose 0.1% last month, confounding expectations for a 0.1% downtick after a 0.2% rise in December.
On Thursday, the Commerce Department reported earlier that U.S. retail sales fell 0.4% in January, confounding expectations for a 0.3% increase. December’s figure was revised down to a decline of 0.1% from a previously reported 0.2% increase.
Hit-and-miss data fueled worries that U.S. economic recovery still faces headwinds, and that the Federal Reserve will take its time dismantling its USD65 billion monthly bond-buying program.
Fed asset purchases weaken the dollar by suppressing interest rates, which tends to bolster assets like stocks and commodities.
While investors recognized that inclement winter weather may be watering down data as opposed to waning demand, the dollar continued to slump anyway on sentiments that a string of winter storms may have been strong enough to make a broader dent in recovery.
The yen, meanwhile, was up against the euro and down against the pound, with EUR/JPY down 0.21% at 139.48, and GBP/JPY trading up 0.14% at 170.44.