U.S. dollar sinks vs. euro on falling inflation expectations

The U.S. dollar moved lower against the euro on Friday, after U.S. a report of consumer sentiment indicated that expectations for higher inflation fell. The consumer -sentiment report suggests that the Federal Reserve may be in no rush to raise rates.

The euro EURUSD, +0.40%   moved up $1.25 against the dollar on Friday from $1.2475 late Thursday. The shared currency had been trading flat to down against the dollar, on the heels of an upbeat U.S. retail sales report. 
The WSJ Dollar Index BUXX, -0.07%  was down fractionally 0.2%, to 79.89, while ICE Dollar Index DXY, -0.26% a measure of the dollar’s strength against a basket of six currencies, notched lower to 87.54 from 87.82 on Thursday.

The dollar did, however, move higher against the yen, hovering at a seven-year high against the Japanese currency on Friday.

The greenback USDJPY, +0.45%  bought ¥116.31, up from ¥115.77 late Thursday, climbing back to levels not seen since 2007.

The pound GBPUSD, -0.26%  ended virtually flat against the dollar at $1.57 from $1.5710 Thursday evening.