Yahoo Finance Dollar Recovers Some Losses After Inflation-Driven Drop
By Scott Kanowsky
Investing.com -- The dollar made up some losses on Thursday after a steep drop the previous day on softer than expected inflation data out of the U.S.
The dollar index, which measures the greenback against a number of other global currencies, was trading 0.08% higher at 105.28 as of 02:47 ET (06:47 GMT).
The headline U.S. consumer price index rose by 8.5% on an annual basis in July and was flat compared with June, below estimates of 8.7% and 0.2%, due in part to a decline in petrol costs. The print led some investors to revise their expectations for a Federal Reserve interest rate hike in September, with the uptick now seen at 50 basis points instead from 75 basis points, according to the CME's Fedwatch tool.
Fed policymakers also warned following the data that they would maintain rate hikes until inflation pressures subside.
Aggressive Fed monetary tightening to quell soaring price growth has undergirded recent strength in the dollar, as traders seek the relative safety of the currency amid concerns that the rate increases may weigh on broader economic growth.
The dollar touched a one-month low in the wake of the release of the inflation data.
Meanwhile, the EUR/USD pulled back slightly from its largest daily percentage gain since mid-June, with the European common currency now changing hands up 0.16% at $1.0313.
The Japanese yen was down 0.11% against the dollar at JPY 132.70, after a 1.6% fall on Wednesday.
Elsewhere, the AUD/USD, another gauge of risk appetite, edged higher by 0.27% to $0.71, while GBP/USD held mostly steady at $1.22.
Additionally, Bitcoin rose 7.04% to $24,553.4, nearing a two-month high for the cryptocurrency.
Related Articles
Dollar Recovers Some Losses After Inflation-Driven Drop
Asian currency bears retreat as inflation view improves - Reuters poll
Asian FX Slips as Fed Hawks, Singapore Growth Concerns Weigh
