Dollar Tumbles to Five-Month Low Amid Softer Economic Data

The US dollar has fallen to its lowest point in five months after weak consumer spending data and subdued inflation weighed on interest rate bets.

According to the Bloomberg Dollar Spot Index, the currency dropped by 0.4% on Friday, marking a third consecutive weekly decline.

Nomura International Plc foreign-exchange strategist Yusuke Miyairi stated that 'the US data have been weaker than what the market had anticipated.'

The dollar's decline is largely attributed to reduced expectations of a Federal Reserve rate hike. Higher rates typically attract foreign investors, which boosts the dollar.