The dollar index (DXY00) Friday fell by -0.29%. The dollar gave up an early advance Friday and turned lower after the University of Michigan March US consumer sentiment index was revised downward to a 2-1/3 year low. Also, Friday's US economic news showed that Feb personal spending rose less than expected, a negative factor for the dollar.
In addition, Thursday evening's comments from Richmond Fed President Barkin weighed on the dollar when he said rapid changes to US trade policy have created "a sense of instability" in the business community, and the associated decline in sentiment could "quiet demand." The dollar maintained its losses Friday on comments from San Francisco Fed President Daly, who said the Fed could take its time to assess the impact of tariffs on the economy, and she still sees two 25 bp interest rate cuts this year by the Fed as a "reasonable" projection.
