The U.S. dollar remained near three-month lows on Friday as rising tensions between Iran and the U.S. and weaker-than-expected PMI data kept the dollar down.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% to 96.047 by 10:54 AM ET (14:54 GMT).
Weakening manufacturing data on Friday increased support for the Federal Reserve cutting rates in July, with the preliminary purchasing managers index from Markit slipping towards the 50 contraction threshold.
The central bank signaled on Wednesday that they would be willing to cut rates in order to combat slowing global growth and cooling inflation, with investors pricing in a July rate cut at 100%.
The dollar rose against the safe haven Japanese yen, with USD/JPY up 0.4% to 107.66.
Elsewhere, the euro was stronger on the weak dollar, with EUR/USD up 0.3% to 1.1328, while GBP/USD slipped 0.2% to 1.2674 and USD/CAD rose 0.2% to 1.3213.