Investing.com - The U.S. dollar fell against other currencies on Friday after weaker than expected inflation data as investors worried that the Federal Reserve could slow down rate hikes.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.06% to 94.47 as of 5:19 AM ET (9:19 GMT).
On Thursday data showed that consumer prices in the U.S. rose less than expected in August, increasing 0.2% compared to expectations of a gain of 0.3%.
The inflation numbers came just a day after data showed the producer price index fell 0.1% last month, increasing concerns that the Federal Reserve could ease its monetary policy.
Investors are also looking ahead to a flurry of economic data later in the day, with retail sales, import and export prices and industrial production coming out at 8:30 AM ET (12:30 GMT).
Meanwhile trade talk efforts between the U.S. and China cooled after U.S. President Donald Trump tweeted that the country “was under no pressure to make a deal with China.”
China had accepted the invitation for fresh trade talks later this month in an effort to stave off new tariffs but an editorial in the state-owned newspaper China Daily said that Beijing would not “surrender to the U.S. demands.”
The euro and sterling climber higher on the weaker dollar, as the Bank of England and European Central Bank voted to keep rates steady on Thursday.
The EUR/USD inched up 0.12% to a two-week high of 1.1704, while the GBP/USD rose 0.14% to 1.3126.
The Turkish lira was down slightly after surging on Thursday after the country’s central bank raised interest rates more than expected. USD/TRY rose 0.08% to 6.0863. The bank’s increase came after Turkish President Tayyip Erdogan issued an order limited the use of foreign currency in domestic transactions, prompting a fall in the currency.