Dollar Falls on Weak US Retail Sales and Consumer Sentiment Reports

The dollar index (DXY00) fell -0.27% on Friday as weak US retail sales and consumer sentiment reports reduced the odds of a September Fed rate hike to 32% from 35% on Thursday. The dollar’s decline was curbed by the 10-year T-note yield rising +5 bp despite the weak US economic reports, driven by inflation concerns. The dollar was also undercut by reduced safe-haven demand as President Trump appears to have given up on plans for any new major military attack on Iran for the time being, favoring economic pressure instead. Treasury Secretary Bessent said on Friday that the administration will…