DXY Retreats After US Inflation Data
The US dollar index eased to 99.9 after consumer prices rose in line with expectations
The dollar index eased to around 99.9 on Wednesday after US consumer prices rose broadly in line with expectations in July, easing concerns over imminent Federal Reserve rate hikes.
Core consumer prices, excluding food and energy, rose 0.2% month-on-month and 2.5% year-on-year, matching the slowest annual pace since March 2021.
Overall, consumer prices increased 0.1% from June and 3.4% from a year earlier.
The moderation in inflation, following last week’s weaker-than-expected jobs report, could ease pressure on the Fed as policymakers balance price stability against risks to employment.
The latest figures also provided some relief amid elevated oil prices and geopolitical uncertainty.
Meanwhile, tensions over the Strait of Hormuz remained high, with President Donald Trump claiming the US had “total control” of the waterway as Washington and Tehran remained locked in negotiations over its reopening.