2024.01.1920:25:00UTC+00U.S. Dollar Showing Modest Move Back To The Downside

The value of the U.S. dollar has moved modestly lower during trading on Friday, giving back ground after trending over the past few days.

The U.S. dollar index has slipped 0.28 points or 0.3 percent to 103.25, pulling back off the one-month high set on Thursday.

The greenback is trading at 148.10 yen versus the 148.16 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0895 compared to yesterday's $1.0876.

The modest pullback by the dollar comes after the University of Michigan released a report showing a significant improvement in U.S. consumer sentiment as well as a continued decrease in inflation expectations.

The University of Michigan said its consumer sentiment index surged to 78.8 in January after jumping to 69.7 in December. Economists had expected the index to inch up to 70.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 81.2 in July 2021.

The University of Michigan's report also showed continued decreases in both year-ahead and long-run inflation expectations.

Year-ahead inflation expectations slipped to 2.9 percent in January after plunging to 3.1 percent in December, hitting the lowest level since December 2020.

Long-run inflation expectations also edged down to 2.8 percent in January from 2.9 percent in December, falling just below the 2.9-3.1 percent range seen for 26 of the last 30 months.