Investing.com - The U.S. dollar fell against most major currencies on Friday after modest inflation data sparked a selloff by fueling sentiments that the Federal Reserve will not rush to unwind stimulus measures that weaken the greenback by design.
In U.S. trading on Friday, EUR/USD was up 0.39% at 1.3056.
In the U.S., the country's consumer price index rose 0.7% in February from January, more than market calls for a 0.5% increase.
The U.S. core consumer price index, which is stripped of volatile food and energy costs, rose 0.2% in February, in line with expectations.
Investors viewed inflation rates as contained, and sold the dollar for profits on sentiments that while the Federal Reserve will eventually wind down stimulus measures one day, the U.S. central bank won't rush to tighten policy in the near future.
Falling consumer sentiment numbers cemented such views.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment reading for March came to 71.8, the lowest since December of 2011 and well below analysts' calls for a 78.0 reading.
The dollar also saw downward pressure after E.U. policymakers took a more relaxed approach to austerity measures.
At a summit earlier, E.U. leaders granted countries such as France, Spain and Portugal extra time to narrow deficits, which gave the single currency room to rise.
Elsewhere, E.U. and International Monetary Fund officials were outlining a financial assistance package for Cyprus, which further pushed up the single currency as did data on both sides of the Atlantic.
Solid U.S. industrial output data failed to buttress the greenback significantly.
The Federal Reserve reported earlier that U.S. industrial production rose by 0.7% in February after contracting 0.1% in January.
Analysts were expecting industrial production to rise 0.4% last month.
The greenback, meanwhile, was flat against the pound, with GBP/USD trading down 0.02% at 1.5078.
The dollar was down against the yen, with USD/JPY trading down 0.67% at 95.47, and down against the Swiss franc, with USD/CHF trading down 0.70% at 0.9406.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.26% at 1.0194, AUD/USD up 0.21% at 1.0407 and NZD/USD trading up 0.58% at 0.8268.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.46% at 82.47.
In U.S. trading on Friday, EUR/USD was up 0.39% at 1.3056.
In the U.S., the country's consumer price index rose 0.7% in February from January, more than market calls for a 0.5% increase.
The U.S. core consumer price index, which is stripped of volatile food and energy costs, rose 0.2% in February, in line with expectations.
Investors viewed inflation rates as contained, and sold the dollar for profits on sentiments that while the Federal Reserve will eventually wind down stimulus measures one day, the U.S. central bank won't rush to tighten policy in the near future.
Falling consumer sentiment numbers cemented such views.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment reading for March came to 71.8, the lowest since December of 2011 and well below analysts' calls for a 78.0 reading.
The dollar also saw downward pressure after E.U. policymakers took a more relaxed approach to austerity measures.
At a summit earlier, E.U. leaders granted countries such as France, Spain and Portugal extra time to narrow deficits, which gave the single currency room to rise.
Elsewhere, E.U. and International Monetary Fund officials were outlining a financial assistance package for Cyprus, which further pushed up the single currency as did data on both sides of the Atlantic.
Solid U.S. industrial output data failed to buttress the greenback significantly.
The Federal Reserve reported earlier that U.S. industrial production rose by 0.7% in February after contracting 0.1% in January.
Analysts were expecting industrial production to rise 0.4% last month.
The greenback, meanwhile, was flat against the pound, with GBP/USD trading down 0.02% at 1.5078.
The dollar was down against the yen, with USD/JPY trading down 0.67% at 95.47, and down against the Swiss franc, with USD/CHF trading down 0.70% at 0.9406.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.26% at 1.0194, AUD/USD up 0.21% at 1.0407 and NZD/USD trading up 0.58% at 0.8268.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.46% at 82.47.