USD Rebounds Trying to Limit Weekly Losses

The U.S. Dollar (USD) is showing some recovery signs on Friday, following steep declines over the past four sessions, which brought the greenback to its lowest level in about six weeks against major currencies.

The Dollar Index (DXY) that measures the greenback against a basket of six major international currencies remains on the road for large weekly losses but is rebounding in the last session of the week with the release of inflation data.

Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, rose by 4% last month, while core inflation went higher by 3.5%.

DXY is higher for the day by 0.28% at 92.122, after going as high as 92.19 earlier.

Earlier today, the University of Michigan’s consumer sentiment index declined to a final reading of 81.2 in July, down from 85.5 in June.

Despite this month’s reading showing relative improvement compared with the initial estimate, it still signaled a decline in the U.S. consumer confidence with grimmer expectations for the economy.