Dollar edges down amid CPI data

US Dollar

New York, May 11 (IANS) The US dollar slightly weakened against its major rivals in late trading on Friday as market participants digested the newly-released consumer prices data.

The dollar index, which measures the greenback against six major peers, decreased 0.04 per cent at 97.3334 in late trading, the Xinhua news agency reported.

The Consumer Price Index (CPI), a measurement of inflation, in the US increased 0.3 per cent in April on a seasonally adjusted basis, the US Bureau of Labor Statistics said on Friday. Economists polled by MarketWatch had forecast a 0.4-per cent advance.

April’s 0.3-per cent CPI increase came after a 0.4-per cent rise in March.

Over the past 12 months ending April, the CPI rose 2 per cent before seasonal adjustment, the largest 12-month increase since the period ending November 2018, according to the report. However, the rate is still well below market expectations.

Some investors think the US inflation might fall further this year and anticipate the Federal Reserve (Fed) to cut interest rates to spur growth.

The Fed downplayed concerns about weak inflation after concluding its two-day policy meeting last week, as the central bank saw no need to alter its “patient” approach on interest-rate moves.

In late New York trading, the Euro rose to 1.1231 dollars from 1.1224 dollars in the previous session, and the British pound decreased to 1.3007 dollars from 1.3023 US dollars in the previous session. The Australian dollar rose to 0.6997 dollar from 0.6994 dollar.

The US dollar bought 109.90 Japanese Yen, higher than 109.69 Japanese Yen of the previous session. The US dollar fell to 1.0125 Swiss francs from 1.0147 Swiss francs, and it decreased to 1.3421 Canadian dollars from 1.3463 Canadian dollars.

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