Investing.com - The dollar extended gains to two-and-a-half week highs against the other major currencies on Friday, despite a disappointing U.S. consumer sentiment report as investors turned their attention to the Federal Reserve’s policy meeting scheduled next week. EUR/USD declined 0.68% to 1.1166, the lowest since September 6. In a preliminary report, the University of Michigan said its consumer sentiment index remained unchanged at 89.8 in August, disappointing expectations for an increase to 90.8. The data came after the U.S. Commerce Department said the consumer price index rose 0.2% in August, compared to expectations for a 0.1% gain and after a flat reading the previous month. Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%. Core CPI, which excludes food and energy costs, increased by 0.3% last month, above forecasts for a 0.2% rise and after a 0.1% advance in July. Market participants were now eyeing the Fed’s next policy meeting amid ongoing uncertainty over a potential rate hike. GBP/USD tumbled 1.06% to 1.3100, the lowest since August 31. The pound remained under pressure after the Bank of England kept monetary policy on hold on Thursday, but indicated that it could cut interest rates again as soon as November unless the economy picks up. USD/JPY edged up 0.17% to 102.24, while USD/CHF gained 0.74% to trade at 0.9791. The Australian and New Zealand dollars were weaker, with AUD/USD down 0.52% at 0.7480 and with NZD/USD sliding 0.67% to 0.7265. Elsewhere, USD/CAD climbed 0.60% to trade at an eight-week high of 1.3235 Statistics Canada reported on Friday that manufacturing sales rose 0.1% in July, disappointing expectations for an increase of 1.0% and after a 0.8% gain in June. The commodity currencies remained under pressure amid tumbling oil prices on Friday following reports that Iran's August crude oil exports jumped 15% to a five-year high of more than 2 million barrels per day. The news sparked fresh concerns over a global supply glut. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.63% at 95.88, the highest since September 1.