WASHINGTON (dpa-AFX) - The U.S. dollar lost ground against most of its major rivals on Friday after data showed a drop in U.S. consumer sentiment in the month of August.
Traders also continued to await more hints on the Fed's plan to withdraw stimulus after a surge in producer inflation and a drop in jobless claims for the third consecutive week.
Several Fed officials have favored a tapering of the QE program in the coming months given improvement in the labor market and price pressures.
The University of Michigan's preliminary report released Friday said U.S. consumer sentiment slumped to 70.2 in August 2021, from 81.2 in the previous month and well below market expectations of 81.2. It was the lowest reading since December 2011,
Data from the Labor Department showed U.S. import prices rose by 0.3 percent in July after surging up by a revised 1.1 percent in June. Economists had expected import prices to climb by 0.6 percent in July compared to the 1 percent jump originally reported for the previous month.
Meanwhile, the Labor Department said export prices shot up by 1.3 percent in July following a 1.2 percent leap in the previous month. Export prices were expected to increase by 0.8 percent.
The dollar index dropped to 92.47, losing more than 0.6 percent from the previous close.
Against the Euro, the dollar is weaker at $1.1797, sliding from $1.1730. Eurozone trade surplus fell to a seasonally adjusted EUR 12.4 billion in June from EUR 13.8 billion in May, data published by Eurostat showed. Exports dropped 0.7% in June, while imports remained stable from the previous month.
The Pound Sterling strengthened to $1.3871, rising nearly 0.5 percent from $1.3807.
Against the Yen, the dollar weakened to 109.61 yen, easing from 110.44 Thursday evening.
The dollar dropped to 0.7372 against the Aussie from 0.7335.
The Swiss franc firmed to 0.9153 a dollar, gaining from 0.9236. Switzerland's producer and import prices rose 3.3% year-on-year in July, data from the Federal Statistical Office showed on Friday.
The Loonie gained marginally at 1.2515 a dollar, up from 1.2527.
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