The dollar index (DXY00) on Friday tumbled to a 3.5-month low and finished down by -0.82%. Friday's yen strength undercut the dollar after the yen whipsawed from a 1-week low up to a 4-week high on speculation that the Japanese government was intervening in the forex market to support the yen. Also, Friday's stronger-than-expected economic news on UK manufacturing activity and retail sales lifted GBP/USD to a 4-month high, underscoring the dollar's weakness. The dollar tumbled despite Friday's upward revision in the University of Michigan US Jan consumer sentiment index to a 5-month high.
The US Jan S&P manufacturing PMI rose +0.1 to 51.9, slightly weaker than expectations of 52.0.
