The dollar index (DXY00) fell by -0.32% on Friday. The dollar was under pressure Friday after WTI crude oil prices fell more than -2%, easing inflation expectations and weighing on Fed policy. Also, strength in stocks on Friday curbed liquidity demand for the dollar.
Dollar losses were limited on better-than-expected US economic news Friday, including Aug capital goods new orders (nondefense, ex-aircraft and parts) and the University of Michigan US Sep consumer sentiment index. Also, hawkish comments on Friday from New York Fed President John Williams supported the dollar when he said the Fed needs to return inflation to target.
