Investing.com - The greenback fell Friday as New York Federal Reserve President John Williams (NYSE:WMB) said that the correlation between employment and inflation is “alive and kicking.”
The correlation, known as the Phillips Curve, has been in doubt lately due to no inflation, despite the unemployment rate being near record-low levels.
In a speech on Friday, Williams said that the Phillips Curve does still exist and the Fed should be “vigilant” about inflation and declining inflation expectations.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.16% to 96.31 as of 10:48 AM ET (15:48 GMT).
The dollar was down against the safe-haven yen, with USD/JPY falling 0.17% to 110.65. The yen is typically sought by investors as a safe haven during times of economic or market stress.
Traders are also keeping an eye on trade developments, which are going well, but still lack clarity on key issues, including intellectual property and technology transfers, Reuters reported.
U.S. President Donald Trump is expected to meet with Chinese Vice Premier Liu He at 2:30 PM ET (19:30 GMT).
Elsewhere, the euro rose due to the weaker dollar, with EUR/USD up 0.18% to 1.1352. The pound recovered slightly after falling earlier in the session amid news that a vote on a Brexit deal next week is unlikely. GBP/USD gained 0.1% to 1.3062.
In Australia, the AUD/USD rose 0.68% to 0.7139, while NZD/USD increased 0.6% to 0.6842.