Dollar Loses Ground Against Major Counterparts
(RTTNews) - The U.S. dollar turned weak against its major counterparts on Friday after data showed an unexpected slowdown in the annual rate of consumer price growth last month.
Data from the Commerce Department showed the annual rate of consumer price growth slowed to 3.8% in May from 4.3% in April. The slowdown surprised economists, who had expected growth to accelerate to 4.6%.
The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 4.6% in May from 4.7% in April. Economists had expected the pace of growth to be unchanged.
The readings on consumer price inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
Although economists generally still expect the Fed to raise interest rates by another quarter point next month, but the data has added to optimism the central bank will not follow through with additional rate hikes.
The dollar index dropped to 102.75 around mid morning, and despite recovering to 102.91, remains weak, losing about 0.41% from the previous close.
Against the Euro, the dollar has weakened to 1.0910 from 1.0864. Against Pound Sterling, the dollar is trading at 1.2696, easing from 1.2612.
The dollar is weak against the Japanese currency, fetching 144.33 yen a unit, compared with 144.79 unit Thursday evening.
The dollar is weak against the Aussie at 0.6666. Against Swiss franc, the dollar is trading at CHF 0.8950, drifting down from CHF 0.8996. Against the Loonie, the dollar is little changed at C$ 1.3252.
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