The U.S. dollar depreciated against its most major counterparts in the European session on Friday, as the nation's personal income slumped in May, easing fears over a faster tightening of monetary policy by the U.S. Federal Reserve.

Data from the Commerce Department showed that personal income slumped by 2.0 percent in May after plunging by 13.1 percent in April. Economists had expected personal income to tumble by 2.5 percent.

Personal spending was virtually unchanged in May after climbing by 0.9 percent in April. Personal spending was expected to rise by 0.4 percent.

A reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth accelerated to 3.4 percent in May from 3.1 percent in April.

The currency was further weighed by stimulus optimism, after President Joe Biden announced that the White House has reached an infrastructure deal with U.S. Senators worth $579 billion.

The agreement proposes spending to rebuild roads, bridges and other traditional infrastructure over the next five years.

The package is expected to generate "millions" of jobs and will be funded through unused coronavirus aid money and returned state jobless benefits.

The greenback showed mixed performance against its major peers in the Asian session. While it fell against the euro and the pound, it rose against the yen. Versus the franc, it held steady.

The greenback slipped to an 8-day low of 0.9151 against the franc from Thursday's close of 0.9178. The greenback is seen finding support around the 0.90 region.

Extending its early decline, the greenback touched a 3-day low of 110.48 against the yen. The pair was worth 110.84 when it ended deals on Thursday. On the downside, 108.00 is possibly seen as its next support level.

Data from the Ministry of Internal Affairs and Communications showed that overall consumer prices in Tokyo were flat on year in June.

That exceeded expectations for a decline of 0.1 percent following the 0.4 percent decline in May.

The greenback slid to a 2-day low of 1.1968 against the euro from yesterday's close of 0.9178. The currency is likely to target support around the 1.22 level.

Survey results from GfK showed that German consumer confidence is set to improve in July as the country eases the lockdown restrictions.

The forward-looking consumer sentiment index rose more-than-expected to -0.3 in July from revised -6.9 in June. The reading was the highest since August 2020. The expected score was -4.0.

The greenback touched 8-day lows of 0.7617 against the aussie and 0.7096 against the kiwi, down from Thursday's closing values of 0.7583 and 0.7057, respectively. The greenback may locate support around 0.78 against the aussie and 0.72 against the kiwi.

The greenback reached as low as 1.2284 against the loonie, compared to Thursday's New York session close of 1.2320. Immediate support for the greenback is likely seen around the 1.21 level.

In contrast, the greenback remained higher against the pound, as the latter fell after the Bank of England's caution about a premature tightening. The currency was trading at 1.3891, compared to yesterday's close of 1.3913.

Survey results from market research group GfK showed that UK consumer sentiment remained unchanged in June.

The consumer confidence index held steady at -9.0 in June, while it was forecast to rise to -7.0.

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