© Reuters. The dollar slips to a more everyday low after inflation
Investing.com – The dollar slid to a more everyday low opposite a basket of currencies on Tuesday after data showed that inflation remained lackluster last month, easing expectations for a faster pace of rate hike from the federal Reserve this year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.16% to 89,75 to 08h51 (12h51 GMT), after having increased up to 90,10 earlier.
The labor Department reported that the index of consumer prices increased by 0.2% compared to February and increased by 2.2% compared to the same month of the previous year.
The core CPI, which excludes the costs of food and energy, increased 0.2% in February and 1.8% compared to the previous year. .
The absence of surprise upside has tempered expectations that the Fed could raise interest rates four times, rather than three, this year, after data last week showing a slowdown in wage growth last month despite strong job growth.
The dollar has been the object of a selling pressure added to the suite of reports according to which u.s. president Donald Trump would have fired the secretary of State’s Rex Tillerson. This has come supply concerns over political instability in Washington.
The euro hit a high daily rate, with the EUR / USD up 0.24% to 1,2379.
The pound sterling also rose against the dollar, with GBP / USD up 0.4% to 1,3957.
In the Uk, the chancellor, Philip Hammond presented the spring budget to parliament, where he was revising the growth forecasts for 2018, but reduced the growth forecasts for 2019 and 2020.
The dollar has reduced its gains against the yen, with USD / JPY rising 0.37% to 106,85.
The japanese currency has been under pressure due to a scandal of cronyism increasingly linked to the japanese Prime minister and his wife involving the sale of public lands.