Dollar hits six-month low

The dollar hit a six-month low against the euro on Friday after a Federal Reserve official said U.S. growth has been generally disappointing, which strengthened the case for more quantitative easing.

More action by the Fed to boost growth will likely be warranted unless the outlook improves, William Dudley, president of the New York Fed, said on Friday.

The dollar did not get a boost from stronger-than-expected U.S. personal income and consumption data as the currency's weak trend is firmly entrenched. The safe-haven dollar was also suffering from a return of risk appetite after the U.S. data and a report showing China manufacturing was better than forecast.

Many analysts expect the Fed to start a new round of bond purchases should it try to boost support for the economy. Such a move would push down yields on U.S. Treasuries and make the dollar less attractive.

'The only chance to keep the dollar supported for the near term is if the numbers start looking better,' said Ron Simpson, director of FX research at Action Economics in Tampa, Florida.