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Dollar Stays Mostly Subdued

The U.S. dollar stayed subdued below the unchanged line for the entire duration of the session on Friday, with traders tracking the developments on trade and economic fronts.

The dollar index, which dropped to a low of 97.36, recovered subsequently and was last seen moving around 97.50, down by about 0.11% from previous close.

According to the data released by the Labor Department, U.S. producer prices showed a modest increase in the month of July, reflecting a rebound in energy prices.

The producer price index for final demand rose by 0.2% in July after inching up by 0.1% in both May and June, the data said. The uptick in prices matched economist estimates.

Meanwhile, core producer prices, which exclude food and energy prices, edged down by 0.1% in July after climbing by 0.3% in June. Economists had expected core prices to rise by 0.2%.

Against the euro, the dollar was down 0.22% at 1.1205.

The Pound Sterling weakened to $1.2027, losing more than 0.8%, after the UK economy unexpectedly contracted for the first time in more than six years in the second quarter, fueling fears of a recession even ahead of Brexit due for October 31.

Gross domestic product fell 0.2% sequentially, partly reversing the first quarter's 0.5% growth, a first estimate from the Office for National Statistics showed Friday. GDP was forecast to remain unchanged.

On an annual basis, the economy grew at a slower pace of 1.2% after rising 1.8% in the first quarter.

The Japanese currency was up 0.4%, trading at 105.64 yen a dollar, having recovered from a low of 106.09 yen a dollar.

The dollar was down 0.1% against the loonie with the dollar-loonie pair trading at 1.3214.

Against Swiss franc, the dollar was down nearly 0.2% at 0.9726, and against the Aussie, it moved up 0.28% with the pair quoting at 0.6783.

Switzerland's unemployment rate remained unchanged in July, data from the State Secretariat for Economic Affairs showed. The jobless rate came in at a seasonally adjusted 2.3% in July, remaining unchanged from June, and was in line with economists' expectation.

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