The dollar was recovering after a knee-jerk decline in reaction to Thursday’s lower-than-expected U.S. inflation data.
The data showed inflation eased to 2.7% year on year in November, below the 3.1% forecast by economists in a WSJ survey. That initially weakened the dollar as it supported the case for further interest-rate cuts.
However, there were several missing data due to the recent government shutdown and the “methodological issues meant that investors treated it with some caution,” Deutsche Bank analysts said in a note.
