(fxcue news) - The value of the U.S. dollar index has moved modestly lower over the course of trading on Friday, as traders react to closely watched inflation data. Currently, the U.S. dollar index is trading at 100.41, down 0.11 points or 0.1 percent. The greenback is trading at 142.87 yen versus the 142.13 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1165 compared to yesterday's $1.1176. The dip by the dollar comes after the Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in August after rising by 0.2 percent in July. The uptick matched expectations. The report also said the annual rate of growth by the PCE price index slowed to 2.2 percent in August from 2.5 percent in July. Economists had expected the pace of growth to slow to 2.3 percent. The slightly bigger than expected slowdown by annual price growth generated some optimism the Federal Reserve will continue to aggressively lower interest rates in the coming months. Excluding food and energy prices, the core PCE price index also edged up by 0.1 percent in August after increasing by 0.2 percent in July. Core prices were expected to rise by another 0.2 percent. Meanwhile, the Commerce Department said the annual rate of growth by the core PCE price index accelerated to 2.7 percent in August from 2.6 percent in July, in line with estimates. "The August PCE report supports the Fed's decision to go big on September 18, although the core year-over-year at 2.7% suggests that another round of 50 basis points needs to come under careful scrutiny unless the labor market suggests weakness," said Quincy Krosby, Chief Global Strategist for LPL Financial. She added, "Although the Fed cannot declare complete victory on inflation, today's report - with 2.2% on the year-over- year headline - underscores that overall inflation continues to move decisively in the right direction."