Forex _ Dollar Falls After China Prices Data Comes In Weaker, Bank of Japan in Foc

© Reuters. Dollar dips in Asia – The dollar dipped in Asia on Wednesday as China inflation data came in weaker than expected and investors kept an eye on the Bank of Japan.

changed hands at 112.27, down 0.35% as traders debated whether the dip in asset purchases by the Bank of Japan on Tuesday was a monetary policy signal or business as usual. traded at 0.7819, down 0.06%.

Consumer prices rose 0.3% in China and at a 1.8% , official data showed Wednesday, below the expected 0.4% and 1.9% gains seen respectively.

rose 4.9%, a tick above the 4.8% gain expected.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.04% to 92.19.

Overnight, the dollar continued its revival from nearly four-month lows against a basket of major currencies shrugging off the recent flurry of mixed Fed commentary on monetary policy outlook.

The U.S. Federal Reserve should leave interest rates at current low levels to support inflation and wage gains, Minneapolis Federal Reserve President Neel Kashkari said on Tuesday.

Kaskari’s inflationary concerns paled in comparison to his Boston counterpart Eric Rosengren who said Monday, the Fed should focus an “inflation range” between 1.5% to 3% as inflation has struggled to meet the Fed’s 2% target.

San Francisco Fed President John Williams, an FOMC voter, said recently three rates remained appropriate for 2018 amid expectations that President Donald Trump’s tax reform plans would give the economy a boost.

The dollar’s move higher, however, was limited somewhat by yen strength after the Bank of Japan reduce its purchases of long-dated government bonds, raising expectations that the central bank could rein in its massive accommodative monetary policy measures this year.

Sterling, continued to weaken in the wake of Prime Minister Theresa May’s decision to reshuffle the Cabinet. Some said they expected the Cabinet reshuffle would strengthen May’s leadership but the opposite appears to have transpired amid a string of resignations.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.