Dollar Slips Amid Weak Retail Sales, Rising Oil Prices

The US dollar slipped on Friday after weak retail sales data led to further recalibration in Federal Reserve rate hike expectations. However, it's on track to snap a two-week losing streak due to rising oil prices driven by an ongoing diplomatic impasse in the Middle East.

Retail sales fell 0.6% in July compared to a consensus estimate of a 0.1% rise, while core retail sales decreased 0.3%. This has led to increased chances of the Fed holding rates steady in September, with a 67% probability according to the CME FedWatch tool.

The dollar index, which tracks the greenback against a basket of six major peers, was down 0.3% at 99.67. Despite this, it's set for its first weekly gain in three weeks.