Investing.com - The U.S. dollar was lower on Friday, following a report that the U.S. economy expanded at its fastest rate in four years.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.11% to 94.47 as of 10:27 AM ET (14:27 GMT).
The U.S. economy accelerated as expected in the second quarter, underlining the case for the Federal Reserve to gradually increase interest rates.
Gross domestic product registered a seasonally-adjusted annual rate of 4.1% growth in the second quarter, its fastest rate of growth since the third quarter of 2014.
Trade tensions lingered, however, with some analysts observing that the second-quarter growth is unsustainable given trade tensions between the U.S. and other countries.
The dollar was lower against the safe-haven yen, with USD/JPY decreasing 0.20% to 111.00. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
Elsewhere, the pound inched higher, with GBP/USD rising 0.07% to 1.3117.
The euro was higher after the dollar fell, despite the European Central Bank keeping rates unchanged on Thursday and reiterating its plan to slowly end its accommodative monetary policy. EUR/USD rose 0.11% to 1.1655.
The Australian dollar was higher, with AUD/USD rising 0.46% at 0.7411, while NZD/USD inched up 0.09% to 0.6798. The loonie was higher against the greenback, with USD/CAD down 0.08% to 1.3060.