The dollar index (DXY00) Friday rose by +0.19%. The dollar recovered from early losses on Friday and moved higher after the University of Michigan US May inflation expectations unexpectedly rose, a hawkish factor for Fed policy. Also, positive comments from Atlanta Fed President Bostic supported the dollar when he said he expects the US economy to slow this year but not fall into recession.
The dollar on Friday initially moved lower from the weaker-than-expected US housing starts and building permits reports and from an unexpected decline in the University of Michigan US May consumer sentiment index to a 3-year low. Also, lower T-note yields Friday undercut the dollar. In addition, the strength in stocks Friday reduced liquidity demand for the dollar.
