The euro made a late-session recovery, gaining over half a cent against the dollar to 1.1943 on a combination of position squaring and an unexpected decline US consumer sentiment.

The euro rally prevented the currency from posting its fourth consecutive weekly decline, which would have been the first time since May of last year when the euro was saddled with a new wave of selling.

The University of Michigan preliminary index of consumer sentiment slipped to 87.4 in February from a 91.2 in January, undershooting forecasts of a 91.0 reading.

The dollar little changed after the January PPI rose 0.3% last month while the core PPI shot up 0.4%, its highest pace in a year.

Interestingly, the dollar did not rally on expectations that the inflationary PPI suggests room for further rate hikes, but then it may well do so in the event that next week’s CPI release shows a similar increase.