Investing.com – The dollar rose against a basket of global currencies on Friday, on the back of mostly upbeat economic data but overall sentiment remained bearish as the greenback is set to post its worst quarter in seven years amid a surge in rival currencies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.15% to 95.46.
The dollar looks set to snap a three day losing streak after data showed inflation eased slightly for the month of May while U.S. manufacturing and consumer sentiment data topped expectations.
Core PCE, a key measure of inflation the Federal Reserve considers in its interest rate decisions, dipped to 1.4% year-over-year in May, from 1.5% in the previous month.
It was the third month in a row that inflation has dipped, leaving it well below the Fed’s target of around 2%.
Meanwhile, manufacturing activity showed no signs of a slowdown, after The Chicago Purchasing Management Index, climbed to 65.7, its highest since May 2014, from 59.4 in May.
Analysts had forecast a figure of 58.0 for June.
The upbeat manufacturing report came ahead of a report showing U.S. consumer sentiment fell less than expected to 95.1 in June, from 97.1 in May.
Despite the upbeat day for the dollar, it has struggled to recoup losses sustained in recent sessions and remained on course to post its worst quarterly performance in seven years after several of its rivals soared in the wake of hawkish comments from central bank leaders.
GBP/USD traded flat at $1.3009, as UK economic growth, measured by gross domestic product, matched analysts’ expectations of a 2% rise.
EUR/USD pared gains, falling to $1.1410, down 0.27%, despite better than expected Eurozone inflation data, fuelling expectations that the European Central Bank would began tapering its ultra-low monetary policy measures.
USD/CAD edged below C$1.30, as the oil-linked Canadian dollar continued its recent ascend amid a recovery in oil prices.
USD/JPY traded at Y112.32, up 0.11%.