Investing.com – The dollar fell against a basket of global currencies on Friday, pressured by data showing the slowdown in inflation continued in July, weakening the Federal Reserve’s case for a third rate hike later this year.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.32% to 93.01.
The Labor Department said on Friday the (CPI) edged up 0.1% last month after being unchanged in June. That lifted the year-on-year increase in the CPI to 1.7% from 1.6% in June.
Economists had forecast the CPI rising 0.2% in July and climbing 1.8% year-on-year.
The downbeat consumer inflation report comes a day after wholesale inflation data undershot expectations, pointing to a continued slowdown in inflation, narrowing expectations the Federal Reserve may keep to its plan to hike rates at least once more this year.
The stuttering pace of inflation has been a key concern for the Federal Reserve, weighing on the central bank’s decision to tightened monetary policy further, after Fed members voted to keep rates unchanged in July.
Meanwhile, Dallas Fed President Rob Kaplan on Friday downplayed the prospect of a third rate hike, saying the Fed’s key interest rate is getting close to a “neutral” level so the Fed should patiently wait for further evidence that inflation will rise before tightening policy.
The euro and sterling were the main beneficiaries of the slump in the greenback, as the latter hit session highs.
rose 0.20% to $1.3004 while tacked on 0.34% to $1.1813.
fell 0.15% to Y109.04, as geopolitical tensions between the U.S. and North Korea remained, boosting demand for safe-haven yen.
lost 0.45% to C$1.2685.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Latest posts by investing.com (see all)
- Forex – Dollar Dips, Bitcoin Jumps as Futures Start Trading - December 11, 2017
- Dollar snaps five-day rising streak before central bank meeting; Swedish crown dives - December 11, 2017
- Forex – Canadian Dollar Edges Lower in Quiet Trade - December 11, 2017