Tue, 05 Jul 2022

U.S. dollar dips modestly amid inflation data

12 May 2022, 06:44 GMT+10

NEW YORK, May 11 (Xinhua) -- The U.S. dollar moved slightly lower in late trading on Wednesday as April U.S. inflation data came in hotter than expected.

The dollar index, which measures the greenback against six major peers, fell 0.07 percent to 103.8460 in New York late trading.

The euro was down to 1.0533 U.S. dollars from 1.0534 dollars in the previous session, and the British pound fell to 1.2270 U.S. dollars from 1.2318 dollars in the previous session. The Australian dollar increased to 0.6948 U.S. dollars from 0.6941 U.S. dollars.

The U.S. dollar bought 129.76 Japanese yen, lower than 130.39 Japanese yen of the previous session. The U.S. dollar was down to 0.9930 Swiss franc from 0.9953 Swiss franc, and it was down to 1.2986 Canadian dollars from 1.3022 Canadian dollars.

The U.S. Labor Department reported on Wednesday that the U.S. consumer price index (CPI) rose 0.3 percent in April, above the 0.2 percent consensus, for an 8.3 percent year-on-year gain. The core CPI, which excludes food and energy, rose 0.6 percent, above the 0.4 percent consensus, for a 6.2 percent year-on-year increase.

"Inflation rose quicker than expected in April," Will Compernolle, senior economist at FHN Financial, said in a note on Wednesday.

"The current Fed tightening path assumes some inflation moderation through this year, so additional upside inflation surprises in the coming months could open the possibility for even more aggressive rate hikes than currently expected in order to restore price stability," said Compernolle.

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