The U.S. dollar generally showed strength on Friday, extending its 2-year high against the pound. The greenback gained ground against the euro and held steady versus the yen.
Trading took place amid a slide in oil and amid the release of a closely-watched regional business survey and data on personal income and spending.
The greenback pushed higher against the euro to reach a mark of 1.4640 by mid-day in New York. This marked its highest in almost 3 days. A moderation during the afternoon left the dollar at 1.4670 by about 4:30 pm Eastern Time.
The dollar saw the same pattern against the British pound, reaching a high of 1.8171 before retreating back to around 1.8227 by the early evening in New York. This continuing a rally against the sterling that has lasted through August and extended the dollar's 2-year high against the British currency. The sterling has been on a general slide lately.
Friday morning, the Department of Commerce released its report on personal income and spending in the month of July, showing that personal income decreased by much more than expected while personal spending showed a modest increase.
The report showed that personal income fell 0.7 percent in July following a 0.1 percent increase in June and a 1.8 percent increase in May. Economists had been expecting a much more modest decrease of about 0.2 percent.
Meanwhile, a closely-watched regional report released later on Friday showed that business activity accelerated in the Chicago area in August. This followed strong statistics for the country's second-quarter economic growth released earlier in the week, further raising hopes that the U.S. economy may not be as bad off as some experts had feared.
The Institute for Supply Management-Chicago revealed that its business index - generally known as the Chicago PMI - surged to 57.9 for August. This compared to the near-stagnant reading of 50.8 for the previous month.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.