Dollar slips after U.S. consumer price data misses expectations
Friday, 11 August 2017 23:18 WIB | CURRENCIES |DOLLARDolar AS
The U.S. dollar weakened against a basket of currencies on Friday, after data showed U.S. consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.
The dollar index, which tracks the greenback against six major currencies, was down 0.13 percent to 93.28, after earlier falling to a one-week low of 92.992.
The U.S. consumer price index edged up 0.1 percent last month after being unchanged in June. Economists polled by Reuters had expected the CPI to rise 0.2 percent in July.
Federal funds futures suggested traders saw a 40 percent chance that the Fed would increase short-term rates at its Dec. 12-13 policy meeting, compared with 42 percent shortly before the release of the July consumer price data.
The dollar fell to a sixteen-week low against the Japanese yen, but pared losses after Russian Foreign Minster Sergei Lavrov said there was a Russian-Chinese plan to defuse tensions between the United States and North Korea.
The dollar was little changed against the Swiss Franc after erasing losses from earlier in the session.
The franc and the yen are often sought in times of geopolitical tension and have logged big gains against the dollar this week amid escalating tensions between North Korea and the United States.
The euro was up 0.15 percent to $1.1788 after Morgan Stanley raised its currency forecasts for the currency, predicting it would hit $1.25 early next year.
Sterling was little changed against the dollar and held near a three-week low as investors remained wary about the outlook for the British economy after a mixed bag of data this week.