Dollar Gives Back Gains as US Economic News Disappoints

The US dollar erased its early gains on Friday and closed the day down by -0.03% after weak economic news in the United States.

The dollar index (DXY00) fell from a 7-week high, with manufacturing production and leading indicators unexpectedly declining in August.

This weaker-than-expected data was a bearish factor for the dollar, which also received pressure from a -1% fall in WTI crude oil prices, easing inflation expectations and potentially prompting the Federal Reserve to loosen monetary policy.

However, the dollar still maintained support from Wednesday's interest rate hike by the FOMC and a 25-basis-point rate hike signal for the end of the year.