Investing.com - The dollar bounced higher against other major currencies on Friday, but gains were expected to remain limited by downbeat U.S. data and fresh concerns over U.S. tax reform plans.
Data on Friday showed that both U.S. industrial and manufacturing production rose less than expected in November.
The report came shortly after the New York Federal Reserve said its Empire State manufacturing index fell to 18.0 in December from 19.4 the previous month, confounding expectations for a reading of 18.6.
The greenback had come under pressure after two U.S. Republican senators on Thursday sought changes to the proposed U.S. tax reform bill.
The bill needs a simple majority to pass in the Senate, in which Republicans hold just 52 of the 100 seats.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 93.76 by 10:40 a.m. ET (14:40 GMT), off session lows of 93.75.
The euro was little changed, with EUR/USD at 1.1777, while GBP/USD declined 0.75% to 1.3330.
USD/JPY added 0.18% to 112.17, while USD/CHF rose 0.29% to 0.9921.
Elsewhere, the Australian dollar was steady, with AUD/USD at 0.7665, while NZD/USD gained 0.37% to trade at 0.7010.
Meanwhile, USD/CAD was almost unchanged at 1.2796 after data showed that Canada's manufacturing sales fell 0.4% in October, compared to expectations for a 0.8% rise.