Dollar Recovers After Strong Consumer Sentiment Data

(RTTNews) - The U.S. dollar climbed higher on Friday, recovering from recent losses, after data from the University of Michigan showed consumer sentiment soared to nearly 2-year high in July.

The report from the University of Michigan showed the consumer sentiment index soared to 72.6 in July from 64.4 in June. Economists had expected the index to tick up to 65.5.

With the much bigger than expected surge, the consumer sentiment index reached its highest level since hitting 72.8 in September 2021.

The sharp increase by the headline index came as the current economic conditions index spiked to 77.5 in July from 69.0 in June, while the index of consumer expectations jumped to 69.4 in June from 61.5 in July.

The report also showed year-ahead inflation expectations crept up to 3.4% in July from 3.3% in June but remain well below the high point of 5.4% in April 2022.

Long-run inflation expectations also inched up to 3.1% in July from 3% in June, again staying within the narrow 2.9-3.1% range for 23 of the last 24 months.

Data released by the Labor Department showed import prices dipped by 0.2% in June after falling by a revised 0.4% in May. Economists had expected import prices to edge down by 0.1% compared to the 0.6% decrease originally reported for the previous month.

Meanwhile, the report said export prices slumped by 0.9% in June after tumbling by 1.9% in May. Export prices were expected to slip by 0.2%.

The dollar index, which dropped to 99.58 in the Asian session, rallied to 100.02 later on in the day, gaining about 0.25%.

Against the Euro, the dollar is trading at 1.2226, up slightly from the previous close. Against Pound Sterling, the dollar has strengthened to 1.3093 from 1.3137.

The dollar is up against the Japanese currency, fetching 138.82 yen a unit. Against the Aussie, the dollar has firmed to 0.6836 from 0.6887.

The dollar has strengthened to CHF0.8623 against Swiss franc, and is up nearly 0.9% against the Loonie, fetching C$1.3227 a unit.