The US dollar index peaked around 104.00 on Thursday before switching into corrective mode ahead of the weekend. The greenback derived support from the 102.80 area earlier before bouncing back above the 103.00 mark ahead of the opening bell on Wall Street.
The dollar eased from long-term highs amid a resurgent risk demand, lower US Treasury yields, and month-end flows on Friday. However, the buck refrains from a deeper retreat so far due to a fall in US equities after a spectacular rally witnessed during the previous session. The Dow Jones opened nearly 0.5% lower, while the S&P 500 and the Nasdaq Composite are shedding more than 1% each in early deals.
The investor focus is on Amazon (NASDAQ:AMZN) now. Its shares opened more than 10% lower as its first-quarter results disappointed investors in late trading on Thursday. The e-commerce giant posted sales of $116.4 billion, below the Wall Street consensus of $116.5 billion, while sales at online stores fell 3% year-over-year. Furthermore, Amazon forecast weaker-than-expected sales for the second quarter. Dismal quarterly results indicate that the US economy could struggle in the months ahead.
Elsewhere, new economic data mixed, as the core PCE inflation fell more than expected last month, while the employment cost index jumped in the first quarter. The data is generally in line with the Fed’s aggressive tightening plan. This, in turn, helps limit the downside potential for the dollar ahead of the central bank’s meeting due next week.