Investing.com – The dollar fell to 14-month lows against a basket of global currencies on Friday, after economic data undershot estimates, narrowing investor expectations the Federal Reserve will keep to its plan to hike rates at least once more this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.58% to 93.23.
U.S. gross domestic product (GDP) increased 2.6% in the second quarter, meeting expectations, the Bureau of Economic Analysis said on Friday.
First-quarter GDP, however, was revised downwards to 1.2%, fuelling concerns that U.S. economic growth was not as robust as previously expected.
Also adding to negative sentiment on the greenback, was continued political uncertainty from Washington, following the U.S. Senate’s failure to pass a repeal of Obamacare, formally known as the Affordable Care Act.
The pound and euro were the main beneficiaries of selling pressure in the greenback, as the euro added to its impressive rally, which has seen the single currency gain nearly 3% against the greenback during the month.
EUR/USD traded at $1.1747, up 0.60%, while EUR/GBP rose 0.10% to 0.8947, benefitting from better-than-expected German and French inflation data.
GBP/USD rose to $1.3129, up 0.49% while USD/CAD fell to $1.2439, following a surge in the loonie on the back of Canadian GDP that confounded expectations, rising to 0.6% in May.
USD/JPY fell to Y110.84, down 0.37%.