Dollar Remains Subdued Against Major Counterparts
(RTTNews) - The U.S. dollar shed ground against its major counterparts on Tuesday with recent data showing a slowdown in inflation reinforcing expectations the Federal Reserve will start reducing interest rates from the first quarter of 2024.
Data from the Commerce Department last week said the annual rate of consumer price growth decelerated to 2.6% in November from a downwardly revised 2.9% in October. Economists had expected the pace of price growth to slow to 2.8% from the 3% originally reported for the previous month.
The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 3.2% in November from a downwardly revised 3.4% in October. Economists had expected core consumer price growth to decelerate to 3.3% from the 3.5% originally reported for the previous month.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
The dollar index dropped to 101.45, losing about 0.25%.
Against the Euro, the dollar weakened to 1.1043 from 1.1017, and against Pound Sterling, it dropped to 1.2727 from 1.2699.
The dollar is up marginally against the Japanese currency, fetching 142.40 yen a unit, compared to previous close of 142.33 yen.
The dollar is down against the Aussie at 0.6825. Against Swiss franc, the dollar is down marginally at CHF 0.8534, and against the Loonie, it is down nearly 0.5% at c$ 1.3200.
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