Forex - Dollar Slips to Day’s Lows after U.S. inflation Data

Forex - Dollar Slips to Day’s Lows after U.S. inflation Data  | Mar 13, 2018 18:35

Dollar lower after U.S. inflation data - The dollar slid to the day’s lows against a currency basket on Tuesday after data showing that inflation remained tepid last month dampened expectations for a faster pace of rate hikes from the Federal Reserve this year.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.16% at 89.75 by 08:51 AM ET (12:51 GMT), after rising as high as 90.10 earlier.

The Labor Department reported that the consumer price index rose 0.2% from February and was up 2.2% from the same month a year earlier, in line with economists’ forecasts.

Core CPI, which excludes food and energy costs, rose 0.2% in February and was up 1.8% from a year earlier, also in line with the consensus forecast.

The lack of an upside surprise tempered expectations that the Fed could raise interest rates four times, rather than three times, this year after data last week pointing to a slowdown in wage growth last month, despite strong jobs growth.

The dollar came under additional selling pressure following reports that U.S. President Donald Trump fired Secretary of State Rex Tillerson. The reports added to concerns over political instability in Washington.

The euro rose to the day’s highs, with EUR/USD adding 0.24% to trade at 1.2379.

Sterling also moved higher against the softer dollar, with GBP/USD climbing 0.4% to 1.3957.

In the UK, Chancellor Philip Hammond was delivering the spring budget statement to parliament, where he revised up growth forecasts for 2018, but cut the growth forecast for 2019 and 2020.

The dollar pared back some gains against the yen, with USD/JPY last up 0.37% to 106.85, off an earlier high of 107.28.

The Japanese currency was pressured lower amid a growing cronyism scandal linked to the Japanese prime minister and his wife involving the sale of public land.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes