The U.S. dollar index slipped below 99.6 on Friday, moving closer to its August 7 two-month low of 95.53 as fresh economic data reduced expectations for a Federal Reserve rate hike. July retail sales in the control group unexpectedly fell, undermining the case for strong U.S. consumer resilience even as seasonal distortions may have affected the reading. The release followed softer producer and consumer inflation data, which appeared to lessen the urgency for the Fed to raise rates at its September meeting. Even so, foreign funds remained relatively underweight in long-dated U.S. Treasury bonds, reflecting concerns that elevated price indices and Fed complacency on inflation could push inflation higher over the longer term. The DXY remained near its lows as the U.S. Treasury completed a joint foreign exchange intervention with Tokyo to support the yen.