Yahoo Finance Dollar Flat Amid Subdued U.S. Inflation Data
Investing.com – The dollar was roughly flat against its rivals Thursday, as U.S. economic data showed the pace of consumer prices was subdued last month, but downside was limited by a slump in the yen amid easing trade-war concerns.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.2% to 94.46.
The Labor Department said on Thursday its Consumer Price index rose just 0.1% last month after edging up 0.3% in May. That missed the economists' forecast for a 0.2% rise.
But that failed to dent optimism over the U.S. inflationary backdrop amid expectations that trade tariffs could increase the pace of domestic inflation.
"The latest reading on prices suggests inflation remains solid, with the risk to rise further as trade tariffs threaten to disrupt global access to materials and stoke U.S. inflation," Stifel said in a note to clients.
Downside on the dollar was limited by yen weakness as investor appetite for risk assets returned following a report the U.S. and China were considering resuming trade talks.
Bloomberg reported that U.S. and Chinese officials considered restarting the trade conversations, which could lead to a bilateral agreement, easing concerns about the prospect of a full-blown trade war between the world's largest two economies.
USD/JPY gained 0.39% to Y112.43, while USD/CHF rose 0.54% to 1.0013.
EUR/USD rose 0.09% to $1.1683, while the GBP/USD rose 0.13% to $1.3222.
USD/CAD fell 0.38% to C$1.3161 but falling oil prices kept a lid on the loonie, supporting the pair.
Related Articles
EU to back Bulgaria's first step toward joining euro: source
Forex - Dollar Steady at 1-1/2-Week Highs after U.S. Inflation Data
