The dollar retreated against a basket of major currencies for a second straight session on Friday, struggling to avoid a weekly decline, after soft U.S. inflation data lowered bets of an aggressive path of rate hikes by the Federal Reserve.
The green currency index dipped to 92.53, following a 0.45 drop on Thursday, trying to lock the fourth consecutive weekly gain this week.
U.S. consumer prices rose a meagre 0.1 percent in April, supporting a moderate pace rather than aggressive, for rate hikes by the Fed this year.
Last week, the non-farm payrolls also showed some weakness in wage growth, lowering the chances of seeing four rate increases in 2018.
The dollar index has faced some selling on profit taking after climbing to the highest level in four and a half months of 93.25 on May 9.
The U.S. 10-year Treasury yield resumed its plunge from a top of 3.014 percent hit two days ago to a low of 2.948 percent, amid concerns after the U.S. withdrawal from Iran’s nuclear deal.
Later in the day, Federal Reserve Bank of St. Louis’ James Bullard will make a speech.
Eyes will return once again next week on another round of trade negotiations between U.S. and Chinese officials, as they will meet in Washington next week.
The euro slipped to a high of 1.1936, ahead of ECB President Mario
Draghi’s speech in Florence later in the day.