x
Breaking News
0

Dollar struggles to pare losses after inflation data misses expectations

ForexAug 11, 2017 12:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The dollar was on track to post a weekly loss

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 U.S. dollar index, 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 Consumer Price Index (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.

GBP/USD rose 0.20% to $1.3004 while EUR/USD tacked on 0.34% to $1.1813.

USD/JPY fell 0.15% to Y109.04, as geopolitical tensions between the U.S. and North Korea remained, boosting demand for safe-haven yen.

USD/CAD lost 0.45% to C$1.2685.

Dollar struggles to pare losses after inflation data misses expectations
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email