The dollar stayed under pressure early on Friday, but managed to reverse some of its losses in a quieter session overnight after upbeat U.S. data helped temper the fallout from the Federal Reserve’s surprisingly dovish policy outlook.
Data offering more evidence the U.S. economy was recovering from a disastrous first quarter helped lift the dollar index to 80.317 from a one-month trough of 80.147. Still, it was down 0.3 percent on the week, its biggest decline in two months.
Investors had sold the greenback after the Fed on Wednesday sounded comfortable about the outlook for inflation despite recent signs of a pick-up in price pressure.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.