US dollar retreats after softer-than-expected inflation data
TLT•The dollar fell after US personal consumption expenditures prices rose 0.3% last month, below economists’ 0.4% forecast, reducing market bets on a Federal Reserve rate hike. The dollar index fell 0.23% to 101.17, while the 2-year Treasury yield dropped 5.82 basis points to 4.831%.
1. Inflation data weighs on dollar
The dollar retreated against major currencies after data showed the US Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, rose 0.3% last month, below economists’ 0.4% forecast. The data reduced market bets on a Fed rate hike, while Treasury yields fell across the board.
2. Currency moves
The euro rose 0.19% to $1.1361, the dollar weakened 0.31% to 156.79 yen and it fell 0.05% against the Swiss franc. The dollar index, which measures the greenback against a basket of currencies including the euro and yen, fell 0.23% to 101.17; it remained on track for a September gain, snapping two consecutive months of losses.
