Dollar remains broadly higher after downbeat UoM report

The U.S. dollar remained broadly higher against the other major currencies on Friday, after the release of downbeat U.S. consumer sentiment data, although Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh. 

During U.S. morning trade, the dollar was higher against the euro, withEUR/USD sliding 0.45% to 1.3038. 

The euro came under pressure after official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month. 

The single currency was also hit after the European Central Bank’s monthly bulletin said Thursday that the extended period of time the bank expects interest rates to remain at present or lower levels is “flexible” and indicated that further rate cuts are possible. 

The greenback was also lower against the pound, with GBP/USDshedding 0.48% to 1.5111. 

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.20% to trade at 99.16, and with USD/CHFedging up 0.08% to 0.9477. 

The greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.24% to 1.0393,AUD/USD tumbling 1.39% to 0.9060 and NZD/USD dropping 0.76% to 0.7792. 

In a report, the Australian Bureau of Statistics said home loans increased by 1.8% in May, less than the expected 2.5% rise, after a 1.2% gain the previous month. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.37% to 83.19. 

In a preliminary report, the University of Michigan said its index of consumer sentiment fell to 83.9 in July, from a reading of 84.1 the previous month, confounding expectations for a rise to 85.0. 

Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month. 

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May. 

The greenback weakened broadly on Wednesday after Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.