- US dollar index climbs 0.4% to 93.87, but still on pace for large weekly drop.
- US industrial production declines 0.3% in April vs. estimate of +0.1%.
The US dollar rebounded on Friday, but was trending near three-and-a-half month lows in part of a broad consolidation trend that disregarded disappointing US industrial production data.
The dollar index (DXY), a trade-weighted average of the US dollar against a basket of six currencies, climbed 0.4 percent to 93.87. The index had previously climbed to a daily high of 94.03 after plunging nearly 1.5 percent throughout the week.
The dollar rebounded across the board on Friday, rising against the euro, Japanese yen and Swiss franc.
The EURUSD declined 0.6 percent to 1.1343 in the early New York session.
The USDJPY advanced 0.5 percent to 119.73.
The USDCHF surged 1.35 percent to 0.9252.
US Industrial Production Declines Unexpectedly
US industrial production declined for a fifth consecutive month in April, as lower oil prices continued to weigh on factory output. Industrial production – a gauge of factory output in the manufacturing, utilities and mining sectors – declined at a seasonally adjusted 0.3 percent in April, the Board of Governors of the Federal Reserve System reported on Friday.
Manufacturing output was virtually unchanged in April, but output in mining and utilities declined 0.8 percent and 1.3 percent, respectively.
The capacity utilization rate, which gauges how fully the industrial sector is using its factory resources, declined to 78.2 percent in April from 78.4 percent.
Further slowdown in industrial production is consistent with broader weakness in the US economy this year. Initial estimates showed first quarter GDP expanded 0.2 percent annually, but economists now expect economic output shrank by as much as 1 percent in the first three months of the year.