HomeFinancial MarketsDollar Falls Ahead of Release of Inflation Data

Dollar Falls Ahead of Release of Inflation Data

The U.S. dollar declined in strength against other major currencies on Tuesday as U.S. investors brace themselves for the latest round of key inflation data set to be released on Wednesday.

Consumer price data is expected to show that headline inflation rose by 0.2% in March, with core inflation advancing by 0.4%. As a result, the Federal Reserve is expected to raise its interest rates by 25 basis points at its May 2-3 meeting before pausing in June.

Last week’s jobs report from the Labor Department indicated that the U.S. labor market remains strong, thereby giving strength to the argument that another Fed interest rate hike will be implemented during the next policy meeting.

“A lot of traders are focused on this inflation data,” Edward Moya, senior market analyst at OANDA in New York observed. “Everyone’s trying to get a sense of does the disinflation process return and does this complicate what the Fed does.”

The dollar index fell by 0.26% to 102.20 on Tuesday, with the euro rising 0.41% against the dollar to $1.0906. The sterling was up 0.29% against the dollar at $1.2418.

Home Prices Rise for Second Straight Month

U.S. home prices increased for a second consecutive month in March, reflecting the sustained inventory shortage faced by buyers. This streak comes after seven...

Futures Rise as Debt Ceiling Deal Set for Next Challenge

U.S. futures advanced during Tuesday's morning session as investors wait for the U.S. debt-ceiling deal to be presented before Congress. Policymakers are under pressure...

Oil Remains Steady as Traders Await Approval of Debt Ceiling Deal

Oil remained little changed on Monday as traders wait to see if lawmakers approve the U.S. debt ceiling deal that policymakers agreed to on...