The dollar index (DXY00) on Friday fell by -0.02%. The dollar gave up an early advance on Friday and turned lower following the weaker-than-expected August MNI Chicago PMI report and after the University of Michigan’s US August consumer sentiment index was revised lower. The dollar was also pressured by dovish comments from Fed Governor Christopher Waller, who stated that he supports a 25-bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months.
The dollar on Friday initially moved higher on signs of strength in US consumer spending after July personal spending rose by the most in four months. Also, sticky inflation pressures are hawkish for Fed policy and are supportive for the dollar after the US July core PCE price index, the Fed’s preferred inflation gauge, rose to a 5-month high.
