During U.S. morning trade, the dollar was higher against the euro, with EUR/USD sliding 0.27% to 1.3262.
In a preliminary report, the University of Michigan said U.S. consumer sentiment fell to a six-month low of 76.8 in September, from a reading of 82.1 the previous month, confounding expectations for a decline to 82.0.
The report came after official data showed that U.S. retail sales rose 0.2% in August, disappointing expectations for a 0.4% rise, after an upwardly revised 0.4% increase the previous month.
Core retail sales, excluding automobiles, rose 0.1% last month, confounding expectations for a 0.3% gain, after an upwardly revised 0.6% increase in July.
A separate report showed that U.S. producer price inflation rose 0.3% in August, more than the expected 0.2%, after a flat reading the previous month.
Core producer price inflation, excluding food and energy, was flat last month, compared to expectations for a 0.1% rise, after a 0.1% gain in July.
The data came amid growing uncertainty over whether the U.S. central bank will start to unwind its USD85 billion-a-month asset purchase program.
Meanwhile, the euro remained under pressure as euro zone finance ministers were meeting in Vilnius, Lithuania, to discuss further reforms to strengthen the region's banking sector.
On Thursday, the European Parliament approved legislation to allow the European Central Bank to oversee banks in the 17 nation currency bloc. ECB President Mario Draghi said the vote was “a real step forward” in establishing a banking union.
The greenback was lower against the pound, with GBP/USD gaining 0.33% to 1.5856.
Elsewhere, the greenback edged lower against the yen, with USD/JPY slipping 0.11% to trade at 99.45, but higher against the Swiss franc, with USD/CHF rising 0.34% to 0.9337.
The greenback was mixed to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.13% to 1.0336, AUD/USD falling 0.17% to 0.9255 and NZD/USD adding 0.18% to 0.8153.
Data earlier showed that manufacuring the business manufacturing index for New Zealand slipped to 57.5 last month, from a reading of 59.5 in July.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 81.85.
In addition, concerns over Syria persisted as U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov continued talks on disarming Syria's chemical weapons program.
Commenting on the negociations, Kerry said pledges of Syria's regime to give up its chemical arms were "simply not enough."