NEW YORK: The US dollar fell on Friday after data showed that US consumer spending was flat in May, while producer price inflation came in below economists' expectations.

The dollar index against a basket of currencies fell 0.26% to 91.598. It rose to a two-month high last Friday after policymakers at the Fed on June 16 forecast two rate hikes in 2023, indicating that the US central bank will address rising price pressures sooner than previously expected.

Sterling continued to weaken, a day after the Bank of England made no changes to its monetary policy. The British pound was last down 0.08% on the day at $1.3909. The greenback weakened to 110.58 Japanese yen, after reaching a 15-month high of 111.11 on Thursday.